FinanceDefault example result: $711,527.68

SEP IRA Growth Calculator

Estimate how a SEP IRA could grow over time so you can compare employer contribution pace, time horizon, and tax-deferred compounding on one page.

Published: April 1, 2026
Last updated: March 29, 2026

Calculator

SEP IRA Growth Calculator

Add the balances already sitting in SEP IRA.

$

Starting balance total: $55,000.00

Use the average employer contribution pace you expect to direct into the SEP IRA.

$

Total monthly contribution: $900.00

Use a long-run estimate that matches how the money is invested or saved.

%

Choose how many years the balance has to grow.

years

Example values are loaded.

Result

Your result

SEP IRA could grow to about $711,527.68 over 20 years on this plan.

Future value

$711,527.68

Total deposits

$271,000.00

Growth

$440,527.68

Projection assumptions

Starting balance total$55,000.00
Total monthly contribution$900.00
Annual return7.2%
Current balance$55,000.00
Employer contribution$900.00

Next steps

Compare before you move on

Most people use one calculator to answer the first question and a related tool to pressure-test the decision.

What this calculator shows

SEP IRA growth is driven by the current balance, the employer contribution pace, and the years left for compounding.

This page is best for self-employed or small-business planning when you want a clean projection without building a full business-income model.

How to use it

  1. 1. Add the balances already in the SEP IRA.
  2. 2. Use an average monthly employer contribution pace that reflects the business funding plan you expect to maintain.
  3. 3. Set the expected return and time horizon to project future value, deposits, and growth.

Formula and assumptions

The balance compounds monthly at the annual rate divided by 12 and adds the modeled contribution pace in each period.

Total deposits include the starting balance plus all modeled employer contributions, while growth is the amount earned above those deposits.

Notes

This does not model self-employment income, compensation caps, SEP contribution-limit calculations, or years when the employer contribution changes materially.

Worked example

$55,000.00 with an average $900.00 monthly employer contribution shows how business-funded retirement savings can compound over time.

This example uses the default sample inputs loaded on reset. It does not update with the live calculator entries above.

Future value

$711,527.68

Total deposits

$271,000.00

Growth

$440,527.68

Feedback

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FAQ

FAQ

Does this calculator determine the maximum SEP IRA contribution I am allowed to make?

No. It projects the funding pace you enter and does not calculate compensation-based SEP contribution limits.

FAQ

Why is the contribution framed as employer money?

Because SEP IRAs are generally funded through employer contributions, even when the employer is your own business.