A SEP IRA is a retirement account for self-employed individuals and small business owners, allowing tax-deductible contributions higher than traditional IRAs.

How is the maximum SEP IRA contribution calculated?

The maximum is generally 25% of eligible compensation (up to an annual IRS dollar limit), but self-employed individuals must use a special calculation to account for self-employment tax.

Are SEP IRA contributions tax-deductible?

Yes, contributions made to a SEP IRA are typically tax-deductible for the employer and reduce taxable income for the year they are made.

What information do I need to use this calculator?

You’ll need your annual compensation or net self-employment income, your planned yearly contribution, and your estimated annual investment return.

Can I see how my balance grows each year?

Yes, the calculator provides charts and tables showing your projected balance, yearly contributions, and earnings over time.

How can I save or share my results?

After calculating, you can copy your results or download them as a PDF or Excel file for easy sharing or recordkeeping.

SEP IRA Calculator

Estimate SEP IRA contributions and long-term growth.

Calculator Inputs

SEP IRA assumptions

Compensation ($)

Compensation or net self-employment income (for max limit)

Annual Contribution ($)

Current Balance ($)

Years (1–50)

Expected Return (%/year, 0–100)

Results

Projected growth (tax-deductible contributions)

Max Contribution

$25,000

Final Balance

$1,131,982

Total Contributions

$500,000

Total Earnings

$621,982

Balance Growth Over Time

Projected balance by year

Contributions vs Earnings by Year

All 20 years

Yearly Breakdown

First 15 years. Download full schedule for all 20 years.

Year	Balance	Contributions	Earnings
1	$36,691	$25,000	$1,691
2	$65,312	$25,000	$3,621
3	$96,002	$25,000	$5,690
4	$128,911	$25,000	$7,908
5	$164,198	$25,000	$10,287
6	$202,037	$25,000	$12,838
7	$242,610	$25,000	$15,574
8	$286,117	$25,000	$18,507
9	$332,769	$25,000	$21,652
10	$382,793	$25,000	$25,024
11	$436,434	$25,000	$28,641
12	$493,952	$25,000	$32,518
13	$555,629	$25,000	$36,676
14	$621,764	$25,000	$41,135
15	$692,680	$25,000	$45,916

For educational and estimation purposes only; not financial or legal advice. U.S. context. SEP IRA contribution limits and eligibility rules apply; consult a tax or financial professional.

How It Works

Step 1: Enter Your Information

Compensation or Net Self-Employment Income: Enter your annual income or net earnings from self-employment. This figure is used to calculate your maximum SEP IRA contribution.
Annual Contribution Amount: Input the amount you plan to contribute each year, up to the maximum allowed based on your income.
Other Inputs: You may also enter your starting balance, number of years to project, and expected annual return rate.

Step 2: Calculate

Click "Calculate" to generate your results. The calculator uses your inputs to determine:

Max Contribution: The highest amount you can contribute in a year, based on IRS rules.
Final Balance: The projected total value of your SEP IRA after the chosen number of years, factoring in contributions and investment growth.
Total Contributions: The sum of all contributions made over the selected period.
Total Earnings: The investment gains earned over time, separate from your contributions.

Step 3: Review Results

Balance Growth Over Time: View a chart showing how your SEP IRA balance could grow each year.
Contributions vs Earnings by Year: See how much of your account value comes from your own contributions versus investment growth.
Yearly Breakdown: Examine a detailed schedule showing your balance, annual contributions, and earnings for each year. Download the full schedule for a complete 20-year view.

Step 4: Export or Share

Copy: Copy the results for your records or to share with a financial advisor.

Export PDF / Excel: Download your results and yearly schedule in PDF or Excel format for easy recordkeeping or further analysis.

Understanding SEP IRAs

A Simplified Employee Pension Individual Retirement Arrangement (SEP IRA) is a retirement savings plan designed for self-employed individuals, small business owners, and their employees.

SEP IRAs allow employers to make tax-deductible contributions to retirement accounts for themselves and eligible employees.

Many people turn to SEP IRAs for their higher contribution limits compared to traditional IRAs, flexible funding amounts, and straightforward setup.

If you are self-employed or run a small business, understanding how much you can contribute and how your savings could grow is crucial for long-term retirement planning.

This calculator helps you see the impact of regular SEP IRA contributions over time, so you can make informed decisions about your retirement savings strategy.

How This Calculator Helps

This SEP IRA Calculator provides a clear projection of your retirement savings based on your actual compensation or net self-employment income. By entering your income and planned annual contributions, you can see:

The maximum allowable SEP IRA contribution for your situation
Your total contributions over the selected period
Projected investment growth and final account balance
A detailed year-by-year breakdown of contributions and earnings

With easy-to-read charts and downloadable reports, the calculator simplifies complex retirement planning, helping you understand how your contributions could grow and what they might mean for your future.