HSA Savings Calculator
Project your Health Savings Account growth and estimate tax savings over time.
A Health Savings Account (HSA) is a triple-tax-advantaged savings account available to individuals enrolled in a High Deductible Health Plan (HDHP). It is widely considered one of the most powerful tax-advantaged accounts available in the United States.
The triple tax advantage:
- Tax-deductible contributions — Contributions reduce your taxable income
- Tax-free growth — Investment earnings are not taxed
- Tax-free withdrawals — Withdrawals for qualified medical expenses are tax-free
No other account type in the US tax code offers all three benefits simultaneously.
Annual contribution limits (2026):
- Individual coverage: $4,300
- Family coverage: $8,550
- Catch-up contribution (age 55+): Additional $1,000
These limits are adjusted annually for inflation.
How the calculation works: The calculator projects your HSA balance using compound growth:
Future Value = Current Balance × (1 + r)^n + Annual Contribution × [((1 + r)^n - 1) / r]
Tax savings are calculated as:
Annual Tax Savings = Annual Contribution × (Federal Tax Rate + State Tax Rate + FICA Rate)
The FICA savings (7.65%) applies because HSA contributions through payroll deduction are exempt from Social Security and Medicare taxes — a benefit not available with traditional IRA or 401(k) contributions.
HSA as a retirement strategy: After age 65, HSA funds can be withdrawn for any purpose (not just medical) without penalty, though non-medical withdrawals are taxed as ordinary income — similar to a traditional IRA. This makes the HSA a powerful supplemental retirement account.
The optimal strategy: Financial planners often recommend maximizing HSA contributions, investing the funds for long-term growth, and paying current medical expenses out of pocket. You can reimburse yourself from the HSA at any future date for medical expenses you have already paid, with no time limit. Keeping receipts allows you to grow the HSA tax-free for decades and then withdraw tax-free.
Average healthcare costs in retirement: A 65-year-old couple retiring today can expect to spend approximately $300,000 or more on healthcare throughout retirement, including Medicare premiums, supplemental insurance, and out-of-pocket costs. A well-funded HSA can significantly offset these expenses.
Investment options: Many HSA providers offer investment options once your balance exceeds a threshold (typically $1,000-$2,000). Investment options range from mutual funds to target-date funds, similar to retirement account options.