Thrift Savings Plan Calculator

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Thrift Savings Plan (TSP) Growth Calculator

function calculateTSP() { var currentBalance = parseFloat(document.getElementById("currentBalance").value); var annualContribution = parseFloat(document.getElementById("annualContribution").value); var returnRate = parseFloat(document.getElementById("returnRate").value) / 100; var yearsToGrow = parseInt(document.getElementById("yearsToGrow").value); var contributionIncrease = parseFloat(document.getElementById("contributionIncrease").value) / 100; if (isNaN(currentBalance) || isNaN(annualContribution) || isNaN(returnRate) || isNaN(yearsToGrow) || isNaN(contributionIncrease) || currentBalance < 0 || annualContribution < 0 || returnRate < 0 || yearsToGrow <= 0 || contributionIncrease < 0) { document.getElementById("tspResult").innerHTML = "Please enter valid positive numbers for all fields."; return; } var futureValue = currentBalance; var totalNewContributions = 0; var currentAnnualContribution = annualContribution; // Use a variable for the changing contribution for (var i = 0; i < yearsToGrow; i++) { futureValue = futureValue * (1 + returnRate); // Growth on existing balance futureValue = futureValue + currentAnnualContribution; // Add new contributions totalNewContributions = totalNewContributions + currentAnnualContribution; // Track total new contributions currentAnnualContribution = currentAnnualContribution * (1 + contributionIncrease); // Increase contribution for next year } var totalEarnings = futureValue – currentBalance – totalNewContributions; var resultHTML = "

Estimated TSP Growth:

"; resultHTML += "Estimated Future TSP Balance: $" + futureValue.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ""; resultHTML += "Total Contributions (Initial + New): $" + (currentBalance + totalNewContributions).toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ""; resultHTML += "Total Earnings from Growth: $" + totalEarnings.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ""; document.getElementById("tspResult").innerHTML = resultHTML; } .calculator-container { background-color: #f9f9f9; border: 1px solid #ddd; padding: 20px; border-radius: 8px; max-width: 600px; margin: 20px auto; font-family: Arial, sans-serif; } .calculator-container h2 { text-align: center; color: #333; margin-bottom: 20px; } .calc-input-group { margin-bottom: 15px; } .calc-input-group label { display: block; margin-bottom: 5px; font-weight: bold; color: #555; } .calc-input-group input[type="number"] { width: calc(100% – 22px); padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; } .calculate-button { display: block; width: 100%; padding: 12px; background-color: #007bff; color: white; border: none; border-radius: 4px; font-size: 18px; cursor: pointer; transition: background-color 0.3s ease; margin-top: 20px; } .calculate-button:hover { background-color: #0056b3; } .calc-result { margin-top: 25px; padding: 15px; background-color: #e9ecef; border: 1px solid #dee2e6; border-radius: 4px; } .calc-result h3 { color: #333; margin-top: 0; margin-bottom: 10px; } .calc-result p { margin-bottom: 8px; font-size: 16px; color: #333; } .calc-result p strong { color: #000; } .calc-result .error { color: #dc3545; font-weight: bold; }

Understanding Your Thrift Savings Plan (TSP) Growth

The Thrift Savings Plan (TSP) is a defined contribution plan for federal employees, similar to a 401(k) for private sector workers. It offers federal employees the opportunity to save for retirement with tax advantages and a variety of investment options. Understanding how your TSP balance can grow over time is crucial for effective retirement planning.

How the TSP Growth Calculator Works

Our TSP Growth Calculator helps you project the potential future value of your TSP account based on your current balance, ongoing contributions, expected investment returns, and the time you have until retirement. It uses the power of compound interest to show you how your money can grow significantly over decades.

Key Inputs Explained:

  • Current TSP Balance ($): This is the total amount of money you currently have accumulated in your TSP account. The higher your starting balance, the more it can grow through compounding.
  • Annual TSP Contribution ($): This represents the total amount you expect to contribute to your TSP each year. This includes your personal contributions (pre-tax, Roth, or both) and any agency matching or automatic contributions. Consistent contributions are a cornerstone of TSP growth.
  • Expected Annual Return Rate (%): This is the average annual percentage return you anticipate your TSP investments will generate. TSP offers various funds (G, F, C, S, I, and L Funds), each with different risk and return profiles. A common historical average for a diversified portfolio might be 5-8%, but this is an estimate and actual returns can vary.
  • Years Until Retirement: This is the number of years you plan to continue contributing to and growing your TSP account before you retire. The longer your money has to grow, the more significant the impact of compounding.
  • Annual Contribution Increase Rate (%): Many federal employees receive annual raises or plan to increase their TSP contributions over time. This input allows you to factor in an annual percentage increase to your contributions, reflecting potential pay raises or a strategy to save more each year.

Understanding the Results:

  • Estimated Future TSP Balance: This is the projected total value of your TSP account at the end of your specified retirement horizon, taking into account your initial balance, all future contributions, and investment growth.
  • Total Contributions (Initial + New): This sum includes your starting TSP balance plus all the new contributions you are projected to make over the years, including any annual increases.
  • Total Earnings from Growth: This figure represents the portion of your future TSP balance that comes purely from investment returns (compound interest), rather than your direct contributions. It highlights the power of long-term investing.

Maximizing Your TSP Potential

To make the most of your TSP, consider these strategies:

  • Start Early: The earlier you begin contributing, the more time your money has to compound.
  • Contribute Consistently: Regular contributions, especially enough to get the full agency match, are vital.
  • Increase Contributions Over Time: As your salary grows, try to increase your contribution percentage. Even small annual increases can make a big difference.
  • Choose Appropriate Funds: Select TSP funds that align with your risk tolerance and time horizon. Lifecycle (L) Funds offer a diversified, age-appropriate approach.
  • Monitor and Adjust: Periodically review your TSP performance and contribution strategy to ensure it aligns with your retirement goals.

This calculator provides an estimate and should be used for planning purposes only. Actual returns and future balances may vary based on market performance, changes in contribution rates, and other factors.

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