Model Health Savings Account growth with contribution limits, employer contributions, tax savings, investment returns, and qualified expenses.
The HSA Calculator estimates how contributions, withdrawals for qualified medical expenses, investment returns, and taxes affect a Health Savings Account over time. It separates account growth from the estimated tax benefit of contributing. The most important input to interpret correctly is the contribution total: employer deposits generally count toward the same annual contribution limit as the account holder's deposits. They are not additional room above that limit. The result is a planning projection, not a determination of HSA eligibility or tax filing treatment.
A concrete input and expected output from the current implementation.
Input
Opening HSA balance: $0 Projection period: 1 year Your contribution: $2,000 Employer contribution: $0 Qualified expenses: $500 Annual investment return: 0% Tax rate: 20%
Expected output
Projected ending HSA balance: $1,500 Estimated tax savings: $400
With no opening balance or investment return, the account ends with $2,000 contributed minus $500 spent, which equals $1,500. The contribution tax estimate is $2,000 multiplied by 20%, or $400; checking backward, $400 divided by 20% returns the stated $2,000 contribution.
The calculator combines the account holder's contribution with any employer contribution and evaluates that total against the contribution limit used for the scenario. It estimates contribution-related tax savings from the entered tax rate. Employer money increases the HSA balance, but it also consumes contribution capacity, so entering it separately prevents the remaining personal contribution room from being overstated.
The projected balance reflects the opening amount, modeled contributions, qualified expenses, assumed investment return, and projection length. Expenses reduce assets available for later growth, while a positive return can compound across a multiyear scenario. The tax-savings estimate is conceptually separate from the HSA balance because avoided tax is not itself an account deposit.
No. Employer contributions generally count with the account holder's contributions toward the applicable annual HSA limit. Enter the employer amount separately so the calculator can include it in both the projected balance and the contribution total. The calculator cannot confirm whether a special eligibility rule or an additional permitted contribution applies to your individual tax situation.
No, not merely because the calculator reports it. Tax savings represents an estimate of tax avoided through the contribution, while the HSA balance reflects money actually held in the account after contributions, expenses, and modeled growth. The savings affects the balance only if you separately contribute or invest money corresponding to that benefit.
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