How to Use the TSP Growth Calculator?

1. Current TSP Balance: Enter your current TSP account balance. This is the starting point for your calculations and represents the money you’ve already saved in your TSP account.

2. Annual Contribution: Input the amount you plan to contribute to your TSP each year. This should include your regular payroll deductions that go into your TSP account.

3. Annual Employer Match: Enter the amount your employer contributes to your TSP annually. The federal government matches up to 5% of your salary, so calculate this based on your current or expected salary.

4. Expected Annual Return: Input your expected annual rate of return as a percentage. This is an estimate of how much you expect your investments to grow each year. A conservative estimate might be around 5-7%, while a more aggressive estimate could be 8-10%.

5. Years Until Retirement: Enter the number of years you have left until you plan to retire. This helps the calculator determine how long your money will have to grow.

Calculate: Click the “Calculate” button to see your results. The calculator will then display your projected TSP balance at retirement, total contributions, and total earnings. It also provides a brief explanation of the results.

When using this calculator, keep in mind that it’s based on several assumptions:

• It assumes a constant rate of return each year, which is not realistic as market performance fluctuates.
• It assumes consistent annual contributions, which may not be the case if your salary or contribution rate changes.
• It doesn’t account for inflation, which can affect the purchasing power of your savings.
• It doesn’t consider potential changes in TSP rules, tax laws, or your personal financial situation.

This tool is valuable for getting a general idea of how your TSP might grow over time and can help you make informed decisions about your retirement savings strategy. You can use it to see how different contribution levels or investment returns might affect your retirement savings. For example, you might run multiple scenarios to see how increasing your contributions or achieving a higher rate of return could impact your final balance.