№ 036 · Retirement cluster
HSA Calculator
The Health Savings Account is the only account taxed nowhere — deductible going in, tax-free as it grows, tax-free coming out for medical costs. Invest it instead of spending it and it becomes a stealth retirement account. Set your contributions and watch the balance grow, then see the tax it quietly saves.
The triple tax advantage
Capturing your employer match first? See the 401(k) Calculator, or project any invested sum in the Investment Growth Calculator.
Your contributions01
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Growth02
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Taxes03
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HSA at retirement · 30 years · tax-free
$528,570.89
$150,678.15 more than the same money in a taxable account
$34,560.00 income tax savedtriple tax advantage
You + employer add$144,000.00
Tax-free growth$379,570.89
Tax saved (deduction)$34,560.00
vs taxable account+$150,678.15
- Balance$528,570.89
- Contributed$149,000.00
| Year 1 | balance $10,318.48, contributed $9,800.00 |
|---|---|
| Year 2 | balance $16,021.44, contributed $14,600.00 |
| Year 3 | balance $22,136.67, contributed $19,400.00 |
| Year 4 | balance $28,693.96, contributed $24,200.00 |
| Year 5 | balance $35,725.29, contributed $29,000.00 |
| Year 6 | balance $43,264.90, contributed $33,800.00 |
| Year 7 | balance $51,349.56, contributed $38,600.00 |
| Year 8 | balance $60,018.66, contributed $43,400.00 |
| Year 9 | balance $69,314.45, contributed $48,200.00 |
| Year 10 | balance $79,282.23, contributed $53,000.00 |
| Year 11 | balance $89,970.58, contributed $57,800.00 |
| Year 12 | balance $101,431.60, contributed $62,600.00 |
| Year 13 | balance $113,721.13, contributed $67,400.00 |
| Year 14 | balance $126,899.07, contributed $72,200.00 |
| Year 15 | balance $141,029.65, contributed $77,000.00 |
| Year 16 | balance $156,181.73, contributed $81,800.00 |
| Year 17 | balance $172,429.16, contributed $86,600.00 |
| Year 18 | balance $189,851.11, contributed $91,400.00 |
| Year 19 | balance $208,532.49, contributed $96,200.00 |
| Year 20 | balance $228,564.36, contributed $101,000.00 |
| Year 21 | balance $250,044.33, contributed $105,800.00 |
| Year 22 | balance $273,077.09, contributed $110,600.00 |
| Year 23 | balance $297,774.89, contributed $115,400.00 |
| Year 24 | balance $324,258.09, contributed $120,200.00 |
| Year 25 | balance $352,655.77, contributed $125,000.00 |
| Year 26 | balance $383,106.32, contributed $129,800.00 |
| Year 27 | balance $415,758.14, contributed $134,600.00 |
| Year 28 | balance $450,770.36, contributed $139,400.00 |
| Year 29 | balance $488,313.62, contributed $144,200.00 |
| Year 30 | balance $528,570.89, contributed $149,000.00 |
Three tax breaks stack up here: the 24% deduction going in ($34,560.00 over the years), tax-free growth (worth $150,678.15 more than a taxable brokerage earning 5.32% after tax), and tax-free withdrawals for medical costs. After age 65 you can also withdraw for anything, paying only ordinary income tax — like a traditional IRA, but better.
Year by year
| Year | Contributed | Balance |
|---|---|---|
| 1 | $9,800.00 | $10,318.48 |
| 2 | $14,600.00 | $16,021.44 |
| 3 | $19,400.00 | $22,136.67 |
| 4 | $24,200.00 | $28,693.96 |
| 5 | $29,000.00 | $35,725.29 |
| 6 | $33,800.00 | $43,264.90 |
| 7 | $38,600.00 | $51,349.56 |
| 8 | $43,400.00 | $60,018.66 |
| 9 | $48,200.00 | $69,314.45 |
| 10 | $53,000.00 | $79,282.23 |
| 11 | $57,800.00 | $89,970.58 |
| 12 | $62,600.00 | $101,431.60 |
| 13 | $67,400.00 | $113,721.13 |
| 14 | $72,200.00 | $126,899.07 |
| 15 | $77,000.00 | $141,029.65 |
| 16 | $81,800.00 | $156,181.73 |
| 17 | $86,600.00 | $172,429.16 |
| 18 | $91,400.00 | $189,851.11 |
| 19 | $96,200.00 | $208,532.49 |
| 20 | $101,000.00 | $228,564.36 |
| 21 | $105,800.00 | $250,044.33 |
| 22 | $110,600.00 | $273,077.09 |
| 23 | $115,400.00 | $297,774.89 |
| 24 | $120,200.00 | $324,258.09 |
| 25 | $125,000.00 | $352,655.77 |
| 26 | $129,800.00 | $383,106.32 |
| 27 | $134,600.00 | $415,758.14 |
| 28 | $139,400.00 | $450,770.36 |
| 29 | $144,200.00 | $488,313.62 |
| 30 | $149,000.00 | $528,570.89 |
How it works · methodology
The math, in the open.
HSA balance: monthly compounding of (your + employer) contributions at the return, balance = balance × (1 + return ÷ 12) + monthly contribution (tax-free) tax saved on contributions = (your + employer) × years × marginal rate taxable counterfactual: same contributions at return × (1 − marginal rate) HSA advantage = HSA balance − taxable-account balance
- contribution
- Your annual HSA contribution (pre-tax)
- employer
- Employer’s annual HSA contribution (also pre-tax)
- return
- Expected annual return on the invested balance
- marginal rate
- Your income-tax rate — drives the deduction and the taxable drag
Assumptions & limits
- The invested portion earns the entered return, compounded monthly; a cash-only HSA would earn far less.
- The taxable comparison taxes all annual growth at the marginal rate (a simplification — real taxable accounts defer some gains).
- Contribution limits are set by the IRS and change most years — enter your own figure; the 2026 limits are $4,400 self / $8,750 family (+$1,000 catch-up at 55+).
- Assumes HDHP eligibility throughout and qualified medical use for tax-free withdrawals. A general estimate, not tax advice.
By the MintNumber Editorial Team·Reviewed
Frequently asked
Questions about HSAs
What is the triple tax advantage of an HSA?
A Health Savings Account is taxed favorably at all three stages, which no other account does. Contributions go in pre-tax (a deduction now, or excluded from payroll if your employer routes it), the balance grows tax-free with no tax on interest, dividends, or capital gains, and withdrawals for qualified medical expenses come out tax-free. A 401(k) or traditional IRA gives you the deduction and tax-free growth but taxes withdrawals; a Roth taxes contributions but frees the rest. The HSA is the only one that skips tax at every step.
How much can I contribute to an HSA?
The IRS sets the limit annually. For 2026 it is $4,400 for self-only coverage and $8,750 for family coverage, with an extra $1,000 catch-up contribution if you are 55 or older. Employer contributions count toward the same limit. These figures change most years for inflation, so this calculator takes your contribution as an input rather than hardcoding a single year — check the current IRS limit and enter what you actually plan to contribute.
Do I have to spend it on medical costs?
Not eventually. Before 65, withdrawals for non-medical expenses are taxed as income plus a 20% penalty, so the tax-free benefit only holds for qualified medical costs. But after age 65 the penalty disappears: you can withdraw for anything and simply pay ordinary income tax, exactly like a traditional IRA — which is why the HSA is often called a “stealth IRA.” Medical withdrawals stay tax-free at any age, and there is no required minimum distribution.
Why is an HSA better than a 401(k) for long-term growth?
Dollar for dollar, the HSA wins because it is never taxed on the way out for medical costs — and healthcare is one of the largest expenses in retirement. You also get the same upfront deduction and tax-free growth a traditional 401(k) gives. The catch is that the contribution limit is much smaller, so the usual advice is to capture your full employer 401(k) match first, then max the HSA, then return to the 401(k). It is a complement, not a replacement.
Do I have to invest my HSA, or does it just sit in cash?
Many HSAs default to a cash account earning almost nothing, and a lot of people never turn on investing — which throws away the best part. Most providers let you invest the balance above a small cash threshold in index funds, the same way a 401(k) works. This projection assumes the invested portion earns your chosen return; if you leave it all in cash, the tax-free growth advantage shown here largely disappears. The strategy that maximizes the HSA is to invest it and pay current medical bills out of pocket, letting the account compound for decades.
What is an HDHP, and do I need one?
To contribute to an HSA you must be covered by a qualifying high-deductible health plan (HDHP) and have no other disqualifying coverage. An HDHP trades a lower premium for a higher deductible, so it suits people who are relatively healthy and can cover the deductible if needed. If an HDHP fits your situation, the HSA it unlocks is one of the most tax-efficient accounts available; if you have high recurring medical costs, a lower-deductible plan without an HSA may serve you better.