HSA Growth to Retirement Calculator
Project an invested Health Savings Account to retirement — annual contributions compounded, with its triple-tax advantage.
How it works
FV = balance × (1 + r)^years + annual × ((1 + r)^years − 1) ÷ r, where r = annual return
An HSA is uniquely tax-advantaged: contributions are pre-tax, growth is untaxed, and withdrawals for qualified medical costs are tax-free — the only "triple-tax-free" account in the US system. If you pay current medical bills out of pocket and let the HSA stay invested, it compounds like a stealth retirement account. After age 65 it also works like a traditional IRA for non-medical withdrawals, taxed but penalty-free.
Worked example
Starting with $2,000 and contributing $4,150 a year for 30 years at 7%: the opening balance grows to about $15,200 and the contributions to roughly $392,000, for around $407,000 total — of which about $280,000 is growth that is never taxed if used for medical costs.
Frequently asked questions
Why is an HSA called triple-tax-advantaged?
Contributions reduce your taxable income, investments grow with no tax on gains or dividends, and withdrawals for qualified medical expenses are entirely tax-free. No other account offers all three at once.
Can I really invest my HSA?
Most HSA providers let you invest the balance above a small cash minimum in mutual funds or ETFs. Money left in the default cash account earns little, so investing is what drives the long-term growth this tool projects.
What if I need the money for non-medical costs?
Before 65, non-medical withdrawals are taxed and hit with a 20% penalty. After 65 the penalty disappears and it is simply taxed like a traditional IRA, so an HSA is flexible retirement money in a pinch.
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Educational estimate, not financial advice. Returns are assumed constant and are not guaranteed.