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InvestmentretirementUnited States only

HSA Contribution & Growth Calculator

HSA growth with the triple tax advantage. Contributions are deductible, growth is untaxed and qualified withdrawals are untaxed, which no other US account offers at all three stages.

Also called: health savings account calculator, hsa growth.

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Balance at the end
$253,216.52

$253,216.52 after 25 years. Contributions of $107,500.00 saved $25,800.00 in tax going in, and the growth of $167,716.52 is untaxed coming out. An HSA is the only account that is untaxed at all three stages.

Total contributed
$107,500.00
Tax saved on contributions
$25,800.00
Investment growth
$167,716.52
Spent on medical costs
$30,000.00
What a taxable account would need
$333,179.63
On the triple advantage
Deductible going in, untaxed while invested, untaxed coming out for qualified expenses.
On the limit
Contribution limits are indexed annually. Check the current year limit rather than relying on the default here.
How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Contributions reduce taxable income, the balance grows untaxed, and withdrawals for qualified medical expenses are untaxed. That triple exemption makes an HSA more efficient than either a 401(k) or a Roth for money you will eventually spend on healthcare, which almost everyone will. Paying current medical costs out of pocket and letting the balance invest maximises the advantage, which is why the spending input is separated from the contribution.

contributions less spending, compounded; nothing is taxed at any stage
c
Contribution
s
Medical spending

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

twenty-five years of contributions

Annual contribution
$4,300.00
Current balance
$8,000.00
Medical spending paid from the HSA
$1,200.00
Years
25
Annual return on invested balance
7%
Marginal tax rate
24%

Balance at the end$253,216.52

25 x 4,300 contributed, taxed at 24%

Open this example

spending everything contributed leaves only the opening balance growing

Annual contribution
$4,300.00
Current balance
$8,000.00
Medical spending paid from the HSA
$4,300.00
Years
25
Annual return on invested balance
7%
Marginal tax rate
24%

Balance at the end$43,419.46

boundary

Open this example

Method and limits

What it assumes

  • Withdrawals are for qualified medical expenses, which is what keeps them untaxed.

What it deliberately does not model

  • Requires enrolment in a high-deductible health plan, which is not right for everyone.
  • Non-qualified withdrawals before 65 are taxed and penalised.
  • Some states tax HSA contributions or growth despite the federal treatment.

Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator

Frequently asked questions

Why is an HSA better than a 401(k)?
For healthcare spending, because it is untaxed at all three stages. A 401(k) is untaxed at two of them. For anything else, the comparison depends on whether the withdrawal qualifies.
Should I spend from the HSA now?
Paying out of pocket and leaving the balance invested compounds untaxed, which is the strategy that extracts the most from the account. It requires the cash flow to do so.