SIMPLE IRA Calculator: Estimate Contributions and Growth for 2026
Use this guide to understand the assumptions, inputs, results, and next steps behind the calculator.
Created by Luis Gonzalez · Last updated October 27, 2026
A SIMPLE IRA is a workplace retirement plan for eligible small employers that combines employee salary deferrals with required employer contributions. This calculator estimates your annual employee contribution, employer contribution, combined savings, and a projected account balance.
With the defaults—$80,000 salary, 10% deferral, 3% employer match, age 40 to 65, $50,000 starting balance, and a 7% annual return—the estimate is $8,000 from you, $2,400 from your employer, and $10,400 total per year. The projected balance at age 65 is $929,162, assuming the same annual contributions and return throughout the projection.
Set your deferral, employer contribution, and timeline
Enter annual salary and the share of pay you defer. Choose whether the employer uses a matching contribution or a nonelective contribution, then enter the applicable rate. Add your age, retirement age, account balance, expected annual return, and catch-up eligibility.
The calculator treats the employee deferral as a percentage of salary, up to its programmed limit. With a match, it caps the matching rate at 3% of salary and does not match more than the employee contributes. If the employer option is nonelective, it estimates 2% of salary regardless of the employee’s deferral.
2026 SIMPLE IRA contribution limits
The calculator uses a $17,000 employee deferral limit for 2026 and a $4,000 catch-up amount for eligible participants age 50 or older (IR-2025-111).
Employer contributions follow the plan’s selected method and applicable rules. A matching employer contribution generally matches salary deferrals up to the plan’s stated percentage; the calculator caps its matching-rate input at 3%. A nonelective contribution is generally calculated as a percentage of eligible compensation, whether or not the employee defers pay. Check your plan document for the actual contribution method and eligibility requirements.
A SIMPLE IRA is not the same as a SEP IRA. A SEP IRA generally uses employer contributions and has a different annual limit and contribution structure. Compare alternatives with the SEP IRA contribution calculator and the SIMPLE IRA contribution calculator.
Default example: what contributes to the projection
The employee contribution is $80,000 × 10% = $8,000. The employer match is 3% of salary: $80,000 × 3% = $2,400. Together, annual additions are $8,000 + $2,400 = $10,400.
The calculator projects for 25 years, from age 40 to age 65. Its result separates $260,000 in contributions from $619,162 in investment growth, producing the displayed $929,162 balance. The projection includes the initial $50,000 balance and assumes a constant 7% return; actual investment returns vary and are not guaranteed.
| Annual salary | Employee deferral | Employer match at 3% | Total annual contribution |
|---|---|---|---|
| $60,000 | 10% = $6,000 | $1,800 | $7,800 |
| $80,000 | 10% = $8,000 | $2,400 | $10,400 |
| $100,000 | 10% = $10,000 | $3,000 | $13,000 |
These salary examples assume the same 10% deferral, 3% match, and no limit binds. They illustrate contribution arithmetic, not account-balance projections.
Formula: contribution and balance calculations
Employee contribution =
the smaller of (salary × employee deferral rate) or the applicable limit
Employer match =
the smaller of employee contribution or (salary × match rate)
Total annual contribution =
employee contribution + employer contribution
Projected balance =
prior balance × (1 + annual return) + annual contribution
The calculator applies contributions during each projected year after the starting age. Its result is a simplified annual model: it does not simulate monthly deposits, changing salaries, market volatility, fees, or a different return sequence.
Compare SIMPLE IRA, SEP IRA, and 401(k) choices
A SIMPLE IRA can be useful when a small employer wants a plan that includes employee deferrals and relatively straightforward employer contributions. The tradeoff is the lower employee deferral limit compared with many 401(k) plans and the obligation to follow SIMPLE employer-contribution rules.
The calculator also displays a modeled 401(k) comparison. Do not treat that comparison as a full plan analysis: a 401(k) can have different eligibility, matching, administrative, and total contribution rules. A SIMPLE IRA employer match calculator can isolate how match rules affect contributions. If you are planning withdrawals later, review the IRA withdrawal calculator and IRA withdrawal tax calculator.
Traditional SIMPLE IRA salary deferrals generally reduce current federal taxable wages, while distributions are generally taxable later. Tax treatment depends on account type and circumstances. For a comparison of Roth and traditional tax timing, read Roth IRA vs. traditional IRA: which saves more taxes?.
Frequently asked questions
Does the projected balance guarantee what I will have at retirement?
No. It assumes a steady annual return and fixed contributions. Investment performance can be higher or lower, and fees, salary changes, contribution timing, and withdrawals can change the ending balance.
Does the employer match count toward my employee deferral limit?
The employee deferral limit applies to your salary deferrals. Employer contributions are calculated separately, subject to plan and tax rules. The calculator reports employee and employer amounts on separate lines.
What happens if I contribute less than 3% of salary?
Under the calculator’s matching logic, the employer contribution cannot exceed your own employee contribution. For example, if your contribution is below the 3%-of-salary match cap, the estimated match is limited to your contribution.
Should I choose the match or the 2% nonelective contribution?
The better result depends on employee deferrals, compensation, and the plan’s required method. A match can depend on employees contributing enough to receive it; a nonelective contribution is not tied to deferrals in this calculator. Confirm the employer’s legal obligations and plan terms before comparing costs.
Can I use the catch-up amount if I am age 50 or older?
The calculator adds its programmed $4,000 catch-up amount when catch-up eligibility is selected. Confirm current IRS rules and your plan’s operation before relying on the displayed limit.
Is a SIMPLE IRA always better than a SEP IRA for a business?
No. A SIMPLE IRA supports employee salary deferrals and employer contributions, while a SEP IRA is generally funded by employer contributions. Workforce, contribution flexibility, limits, and plan administration should guide the comparison.
Next steps
Test a realistic deferral rate and employer contribution method, then compare the annual contribution with your take-home budget. Use a simple retirement calculator to put the projected balance in context, and check plan rules with the employer or plan administrator. Revisit the projection with lower and higher return assumptions rather than relying on a single market forecast.