Calculate your potential HSA savings over time, considering contributions and estimated investment growth.
Your projected HSA balance after years will be approximately $0.00.
Understanding Your Health Savings Account (HSA) Growth
A Health Savings Account (HSA) is a tax-advantaged savings account available to individuals enrolled in a High Deductible Health Plan (HDHP). It offers a triple tax advantage: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.
How the HSA Account Growth Calculator Works
This calculator helps you estimate the future value of your HSA by taking into account your current balance, your planned annual contributions, and an estimated rate of return on your investments. The calculation projects the growth year by year, compounding the returns.
The Formula (Simplified Concept):
The core of the calculation involves projecting the balance forward each year. For each year:
Starting Balance: The balance at the beginning of the year.
Add Contributions: The total amount contributed during the year is added.
Calculate Growth: The sum of the starting balance and contributions is multiplied by the estimated annual growth rate.
Ending Balance: The starting balance plus contributions plus the calculated growth becomes the ending balance for the year, which then serves as the starting balance for the next year.
Balancen-1 is the balance at the end of the previous year (or current balance for year 1).
Contributionn is the annual contribution made in year n.
GrowthRate is the estimated annual growth rate (e.g., 0.07 for 7%).
The calculator iteratively applies this formula for the specified number of years.
Key Inputs Explained:
Current HSA Balance: The amount already in your HSA account.
Annual Contribution: The total amount you plan to contribute to your HSA each year. This can be adjusted if you plan to contribute different amounts in different years, though this calculator assumes a consistent annual contribution.
Estimated Annual Growth Rate: The average annual percentage return you expect from your HSA investments. This is an estimate, and actual market returns can vary significantly. A common historical average for stock market investments is around 7-10%, but past performance is not indicative of future results.
Number of Years to Project: The timeframe over which you want to see your HSA's potential growth.
Why Use an HSA Calculator?
Retirement Planning: HSAs can serve as a powerful tool for healthcare expenses in retirement, tax-free.
Budgeting: Understand how much you can realistically contribute and save.
Investment Strategy: Visualize the impact of different growth rates and contribution levels on your long-term savings.
Financial Goal Setting: Set achievable targets for your healthcare savings.
Remember that this calculator provides an estimate. Actual results will depend on market performance, your specific contribution strategy, and changes in IRS contribution limits. It's always a good idea to consult with a financial advisor for personalized advice.
function calculateHsaGrowth() {
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var annualContribution = parseFloat(document.getElementById("annualContribution").value);
var estimatedAnnualGrowthRate = parseFloat(document.getElementById("estimatedAnnualGrowthRate").value);
var yearsToProject = parseInt(document.getElementById("yearsToProject").value);
// Validate inputs
if (isNaN(currentBalance) || currentBalance < 0 ||
isNaN(annualContribution) || annualContribution < 0 ||
isNaN(estimatedAnnualGrowthRate) || estimatedAnnualGrowthRate < 0 ||
isNaN(yearsToProject) || yearsToProject < 1) {
alert("Please enter valid positive numbers for all fields, with at least 1 year.");
return;
}
var growthRateDecimal = estimatedAnnualGrowthRate / 100;
var projectedBalance = currentBalance;
for (var i = 0; i < yearsToProject; i++) {
// Add this year's contribution before calculating growth on the total
projectedBalance += annualContribution;
// Calculate growth for the year
projectedBalance *= (1 + growthRateDecimal);
}
// Format the result to two decimal places
var formattedBalance = projectedBalance.toFixed(2);
document.getElementById("projectedYears").textContent = yearsToProject;
document.getElementById("projectedBalance").textContent = "$" + formattedBalance.replace(/\B(?=(\d{3})+(?!\d))/g, ","); // Add commas for thousands
}