SEP IRA Calculator: Project a Self-Employed Retirement Balance
Project how a SEP IRA could grow — the retirement account that lets the self-employed and small-business owners contribute well beyond regular IRA limits.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year growth schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Future value | Total contributions | Total interest earned |
|---|---|---|---|
| $30k · $1k/mo · 7% · 25yr | $981,834.24 | $330,000.00 | $651,834.24 |
| $0 · $1.5k/mo · 8% · 20yr | $883,530.62 | $360,000.00 | $523,530.62 |
| $120k · $2k/mo · 6% · 15yr | $876,128.65 | $480,000.00 | $396,128.65 |
| $50k · $800/mo · 7% · 30yr | $1,381,801.67 | $338,000.00 | $1,043,801.67 |
How This Calculator Works
Enter the current SEP IRA balance, the average annual return you expect, the years until retirement, and your monthly contribution. The calculator compounds the balance monthly and adds each contribution, showing the projected balance and the growth.
The Formula
Future Value with Regular Contributions
P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
With $30,000 saved, $1,000 added monthly, and a 7% average return over 25 years, a SEP IRA reaches about $981,800. Contributions account for $330,000; investment growth supplies the rest.
Key Insight
The SEP IRA's appeal is its high contribution ceiling — far above a regular IRA — which lets self-employed earners save aggressively in strong years. Contributions are pre-tax, so withdrawals in retirement are taxed as income.
Frequently Asked Questions
What is a SEP IRA?
A SEP IRA is a retirement account for the self-employed and small-business owners. It allows much larger contributions than a regular IRA, tied to business income.
How much can I contribute?
The SEP IRA limit is a percentage of compensation up to an annual IRS cap, well above the standard IRA limit. The exact amount depends on your earnings.
How is a SEP IRA taxed?
Contributions are pre-tax and reduce taxable income now; growth is untaxed until withdrawal. Withdrawals in retirement are taxed as ordinary income.
Who can open a SEP IRA?
Self-employed individuals and small-business owners. If a business has employees, the owner must generally contribute for eligible employees too.
SEP IRA or solo 401(k)?
Both suit the self-employed. A solo 401(k) can allow larger contributions at lower incomes and permits loans; a SEP IRA is simpler to run. The best choice depends on the situation.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The projection compounds the balance monthly at a constant expected return and adds a fixed monthly contribution. It assumes contributions stay within the SEP IRA limit and excludes fees and tax.
Written by Ugo Candido · Last updated May 17, 2026.