Calculator Use
The tsp calculator is an essential tool for federal employees and members of the uniformed services participating in the Thrift Savings Plan. This calculator helps you project the future value of your retirement account based on your current savings, ongoing contributions, and agency matching. By adjusting variables like your contribution percentage and expected rate of return, you can visualize how small changes today significantly impact your nest egg tomorrow.
Whether you are under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS), understanding your TSP growth is vital for a secure retirement.
- Current TSP Balance
- The total amount currently sitting in your TSP account across all funds (G, F, C, S, I, or L Funds).
- Annual Salary
- Your current gross annual base pay, used to calculate percentage-based contributions and matching.
- Contribution (Per Pay Period)
- The amount you contribute every two weeks. This can be a percentage of your pay or a fixed dollar amount.
- Expected Annual Return
- The anticipated average growth rate of your investments. Historical returns vary by fund (e.g., C Fund vs G Fund).
How It Works
Our tsp calculator uses a compound interest formula applied to your specific pay frequency (usually 26 pay periods per year). One of the most critical aspects of the TSP for FERS employees is the Agency Match. Here is how the matching math works:
Total Addition = Employee Contribution + Agency Automatic (1%) + Agency Matching (Up to 4%)
- Agency Automatic Contribution: 1% of your basic pay, regardless of whether you contribute.
- Matching (First 3%): Dollar-for-dollar match by your agency.
- Matching (Next 2%): 50 cents on the dollar match by your agency.
- Max Match: If you contribute 5% of your pay, your agency contributes a total of 5% (1% auto + 4% match).
Calculation Example
Example: A FERS employee has $50,000 in their TSP, earns $75,000 annually, contributes 5%, and plans to retire in 20 years with an expected 7% annual return.
Step-by-step projection:
- Pay Period Salary: $75,000 / 26 = $2,884.62
- Employee Contribution (5%): $144.23
- Agency Match (5%): $144.23
- Total Bi-weekly Investment: $288.46
- Compounding: The calculator applies the 7% return across 520 pay periods (20 years × 26).
- Final Result: After 20 years, the balance grows to approximately $524,675.
Common Questions
What is the best TSP fund for growth?
Historically, the C Fund (S&P 500) and S Fund (Small Cap) have provided the highest long-term returns, though they come with higher volatility. The G Fund is the safest but usually only keeps pace with inflation. Many use this tsp calculator to see how a higher return rate (representing C/S funds) compares to a lower one (G fund).
Should I use Roth or Traditional TSP?
Traditional TSP contributions are pre-tax, reducing your taxable income now but making withdrawals taxable later. Roth contributions are made with after-tax dollars, allowing for tax-free withdrawals in retirement. The total balance projected by the calculator remains the same, but the tax implications differ.
What are TSP catch-up contributions?
If you are age 50 or older, you can contribute additional "catch-up" funds beyond the standard IRS limit. This is a great way to boost your balance if you started saving late in your career.