SIMPLE IRA Calculator: Project a Small-Business Retirement Balance
Project how a SIMPLE IRA could grow — the retirement plan small employers (typically under 100 employees) use to match their team's contributions without the complexity of a 401(k).
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 |
|---|---|---|---|
| $15k · $500/mo · 7% · 20yr | $321,044.41 | $135,000.00 | $186,044.41 |
| $0 · $300/mo · 8% · 25yr | $285,307.92 | $90,000.00 | $195,307.92 |
| $50k · $800/mo · 6% · 15yr | $355,359.65 | $194,000.00 | $161,359.65 |
| $5k · $250/mo · 7% · 30yr | $345,575.24 | $95,000.00 | $250,575.24 |
How This Calculator Works
Enter the current SIMPLE IRA balance, the expected annual return, the years until retirement, and the monthly contribution combining your deferral and the employer match. The calculator compounds monthly and shows the projected balance plus the share built by investment 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 $15,000 saved, $500 a month added (employee plus match), and a 7% return over 20 years, a SIMPLE IRA reaches about $321,000. Contributions account for $135,000; investment growth supplies the remaining $186,000.
Key Insight
The SIMPLE IRA's defining feature is the employer match — typically 3% of pay, dollar-for-dollar on what the employee contributes. Skipping the match leaves free money behind, which is why the headline 'savings rate' of a SIMPLE IRA participant is usually their own deferral plus the matched 3% they get for showing up to contribute.
Frequently Asked Questions
What is a SIMPLE IRA?
A retirement plan for small employers — typically under 100 employees — that matches employee contributions. It is simpler to administer than a 401(k) but has lower contribution limits.
How does the employer match work?
Most SIMPLE IRAs match 3% of pay dollar-for-dollar on what the employee contributes. Some use a 2% non-elective contribution paid to all eligible employees regardless of deferral.
How are contributions taxed?
Employee contributions are pre-tax, lowering taxable income now. Growth is untaxed until withdrawal. Withdrawals in retirement are taxed as ordinary income; early withdrawals can trigger extra penalties.
What are the contribution limits?
The employee deferral limit is lower than a 401(k) — check the current IRS figures for the exact dollar amount. Catch-up contributions are allowed for those 50 and older.
SIMPLE IRA or 401(k)?
SIMPLE IRAs are easier and cheaper to administer but have lower limits. 401(k)s allow much higher contributions and richer plan design but cost more to run. Choice depends on company size and contribution targets.
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Data Sources & Benchmarks
This calculator draws on 2 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 SIMPLE IRA limits and excludes fees and tax. Employer match is included only if folded into the monthly contribution figure.
Written by Ugo Candido · Last updated May 17, 2026.