About the RMD Calculator
RMD Calculator helps estimate the key numbers involved in retirement decisions. It is designed for quick scenario comparison: enter a realistic set of values, calculate the result, then change one assumption at a time to see what has the greatest effect. Unlike a static table, the result responds to your inputs and keeps the calculation in your browser. Amounts are displayed in U.S. dollars for consistency, but the mathematical formulas can be used with another currency when every monetary input uses that same currency.
How to use this calculator
Enter values that match your situation and select Calculate result. Review the main result and its supporting figures, then change one input at a time to compare scenarios. Results are rounded for readability while the calculation retains additional precision internally.
Information you will need
- Starting amount
- Monthly contribution
- Annual return
- Years
How the calculation works
Projects growth with monthly compounding and contributions. Read the primary result together with the supporting values rather than focusing on one number alone. A useful estimate should make its assumptions visible. If the answer looks surprising, verify the unit, rate, time period, and whether the entered value is gross or net. Run a conservative and an optimistic scenario to understand the range of possible outcomes.
Formula or method
FV = P(1+r)n + C((1+r)n - 1)/r.
Worked example
$10,000 + $250/month at 7% for 10 years.
The example is illustrative rather than a recommendation. Use your own verified values and keep all monetary or measurement units consistent. When comparing alternatives, save or note each result so the assumptions do not become mixed.
How to interpret the result
The primary output answers the main question posed by the rmd calculator, while the additional cards provide context. A result with many decimal places is not necessarily more certain. The displayed precision makes comparison easier, but uncertainty in the inputs can be larger than the rounding difference.
Compare the result with a second scenario using a less favorable rate, return, cost, or time period. This sensitivity check often provides more useful planning information than one best-case projection.
Limitations and important notes
The rmd calculator is a planning tool, not a quote, filing calculation, lending decision, or promise of future performance. It does not automatically retrieve live market rates or apply every fee, tax bracket, program rule, product limit, or state law. Rules for products such as FHA, VA, Social Security, retirement accounts, and taxes can change. Confirm time-sensitive values with the lender, plan administrator, IRS, SSA, or another relevant authority before acting.
Frequently asked questions
What is an RMD?
An RMD, or required minimum distribution, is the minimum amount the IRS requires you to withdraw each year from tax-deferred retirement accounts such as traditional IRAs, 401(k)s, and 403(b)s once you reach a certain age. The purpose is to force you to pay taxes on money that grew tax-deferred. The amount is calculated by dividing your account balance on December 31 by a life-expectancy factor from the IRS Uniform Lifetime Table. Failing to take your RMD on time results in an excise tax of up to 25 percent of the shortfall.
What age do RMDs start?
Under the SECURE 2.0 Act, the age for starting RMDs is 73 if you were born between 1951 and 1959, and 75 if you were born in 1960 or later. People born in 1950 or earlier must start at age 72, replacing the old rule of 70 1/2. Your first RMD must be taken by April 1 of the year after you turn the applicable age, and later distributions must be taken by December 31 each year. The age thresholds change with legislation, so verify the current rule.
How are RMDs calculated?
To calculate your RMD, divide your retirement account balance as of December 31 of the prior year by a life-expectancy factor from the IRS Uniform Lifetime Table. For example, at age 73 the factor is 26.5, so a $500,000 IRA balance requires an RMD of about $18,868 for that year. The factor decreases each year, which means required withdrawals grow over time. Spouses who inherit an account use the Joint Life and Last Survivor Table, and beneficiaries use separate rules. Your plan administrator often calculates it for you.
What is the penalty for not taking an RMD?
If you fail to take your full RMD by the deadline, the IRS imposes an excise tax of 25 percent of the amount you should have withdrawn but did not. The penalty drops to 10 percent if you correct the mistake within two years, under the SECURE 2.0 Act, down from the previous 50 percent. You report the missed amount and pay the tax using Form 5329. Because the penalty is steep, most retirees use an RMD calculator or have their custodian set up automatic distributions to stay in compliance.
Do RMDs apply to Roth accounts?
Roth IRAs are not subject to required minimum distributions during your lifetime, which is one reason they are popular for retirement and inheritance planning. Roth 401(k) accounts also became exempt from RMDs starting in 2024 under the SECURE 2.0 Act, matching Roth IRA rules. Traditional IRAs, traditional 401(k)s, 403(b)s, 457(b)s, and SEP and SIMPLE IRAs all require RMDs. Beneficiaries who inherit Roth IRAs face separate distribution requirements unless the account passes to a spouse. This RMD-free feature lets Roth balances continue growing tax-free.
Can I donate my RMD to charity?
Yes. A qualified charitable distribution, or QCD, lets you transfer up to $108,000 for 2025, rising to $110,000 for 2026, directly from your IRA to a qualifying charity, tax-free. The amount counts toward your required minimum distribution but is excluded from your taxable income, which can reduce taxes and keep you in a lower bracket. You must be at least age 70 1/2 and the funds must go directly from your IRA custodian to the charity. QCDs cannot be made from 401(k)s or ongoing plans.
What is the inherited IRA 10-year rule?
The SECURE Act requires most non-spouse beneficiaries who inherit an IRA or retirement account to withdraw the entire balance within 10 years of the original owner's death. The SECURE 2.0 Act clarified that beneficiaries of a person already taking RMDs must also take annual distributions in addition to emptying the account by year 10. Exceptions include surviving spouses, minor children, disabled or chronically ill beneficiaries, and heirs no more than 10 years younger than the original owner. Planning distributions carefully can minimize the tax impact of the inherited account.