Savings & Banking
HSA Calculator
An HSA is the only account that is untaxed three times over: deductible going in, untaxed while it compounds, and untaxed coming out for medical costs. Treated as an investment account rather than a spending one, it usually beats every other wrapper available to you.
Tested against worked examplesHow we verify
2026 limits: $4,400 self-only, $8,750 family, plus $1,000 catch-up at 55.
Counts against the same annual limit.
HSA balance at your horizon: $221,376
HSA balance at your horizon
$221,376
Tax-free when spent on qualified medical costs, at any point in your life.
- Total contributed
- $108,000
- Investment growth
- $113,376
- Income tax avoided
- $21,120
- FICA avoided
- $6,732
- Same money in a taxable account
- $168,657
- HSA advantage
- $52,719
7.65% that no other retirement account saves you.
Compare scenariosTry three values of one input
| Your annual contribution | |||
|---|---|---|---|
| HSA balance at your horizon | $204,977 | $221,376+$16,398 | $237,774+$32,796 |
| Total contributed | $100,000 | $108,000+$8,000 | $116,000+$16,000 |
| Investment growth | $104,977 | $113,376+$8,398 | $121,774+$16,796 |
| Income tax avoided | $19,200 | $21,120+$1,920 | $23,040+$3,840 |
| FICA avoided | $6,120 | $6,732+$612 | $7,344+$1,224 |
| Same money in a taxable account | $156,854 | $168,657+$11,803 | $180,460+$23,606 |
Every other input stays at the value you set above — currently $4,400 for your annual contribution. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
Contributions are treated as arriving once a year and compounding at the given return. Income tax saved is your contribution × marginal rate × years; FICA saved adds 7.65% on payroll deferrals only. The taxable comparison starts from after-tax dollars and compounds at the return less a 0.5% annual drag for dividends and rebalancing — a rough stand-in for the real, situation-specific figure.
Contribution limits are not enforced here; check the current IRS figures before setting your payroll deferral. State treatment varies — California and New Jersey tax HSA contributions and growth. This projection assumes the balance stays invested and untouched, which is what makes the numbers large.
What this assumes
- Eligibility requires a qualifying high-deductible health plan; this does not check that you have one.
- A constant investment return, and that the balance is actually invested rather than left as cash — many providers default to cash.
- Qualified medical withdrawals are tax-free. After 65, non-medical withdrawals are taxed like a traditional IRA.
What changes this number
- Whether the balance is invested
- The single biggest difference between an HSA used as a spending account and one used as a retirement account.
- Paying medical costs out of pocket
- Leaving the HSA untouched is what turns it into the most tax-advantaged account available.
- Time
- Three tax advantages compounding together make the horizon matter more here than in a taxable account.
A worked example
Take the $5,400 a year for 20 years scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Your annual contribution
- $4,400
- Employer contribution
- $1,000
- Years invested
- 20 years
- Annual return
- 7%
What it returns
- HSA balance at your horizon
- $221,376
- Total contributed
- $108,000
- Investment growth
- $113,376
- Income tax avoided
- $21,120
- FICA avoided
- $6,732
Try an example
Frequently asked questions
What is the HSA triple tax advantage?
Contributions are deductible, growth is untaxed, and withdrawals for qualified medical expenses are untaxed. No other US account does all three. Payroll contributions add a fourth break by escaping the 7.65% FICA tax, which a 401(k) never does.
Who can contribute to an HSA?
You must be covered by a qualifying high-deductible health plan, with no other disqualifying coverage, and not enrolled in Medicare or claimed as a dependent. Eligibility is checked monthly, so mid-year changes prorate the limit.
Should I invest my HSA or keep it in cash?
That depends on whether you can pay medical bills from other money. If you can, invest the balance and let decades of compounding run. If a $3,000 bill would go on a credit card instead, keep at least the deductible in cash — the tax break is not worth 20% interest.
What happens to an HSA after 65?
The 20% penalty for non-medical withdrawals disappears. You can spend it on anything, paying ordinary income tax like a traditional IRA, or keep using it tax-free for medical costs — including Medicare premiums, which qualify. That makes it strictly better than a 401(k) at that point.
Can I reimburse myself for an old medical expense?
Yes, and there is no deadline. An expense incurred after the HSA was opened can be reimbursed decades later, provided you kept the receipt. Some people pay out of pocket for years, let the account compound, then withdraw tax-free against a folder of old receipts.
Related calculators
HDHP vs PPO Calculator
Compare a high-deductible health plan against a traditional PPO across a year of medical spending, including HSA money and the deductible, coinsurance and out-of-pocket cap.
401(k) Calculator
Project your 401(k) balance at retirement — including the employer match — and check your contributions against the 2026 IRS limit of $24,500.
Roth IRA Calculator
Project your Roth IRA's tax-free value at retirement and see how much of it is earnings you'll never pay tax on. Uses the 2026 limit of $7,500.
Investment Calculator
Project an investment portfolio's growth with monthly contributions — final value, your money vs market growth, and the year-by-year path.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.