RMD Calculator (Required Minimum Distribution)
Calculate your Required Minimum Distribution using the official IRS Uniform Lifetime Table. See this year's RMD and a 10-year projection.
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This Year's Required Minimum Distribution
$20,325.00
Estimated • Based on your inputs
IRS Distribution Period Factor
25
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
Required Minimum Distribution = prior year-end account balance ÷ the IRS "distribution period" for your age, from the Uniform Lifetime Table (Table III) in IRS Publication 590-B. RMDs are required starting at age 73 under the SECURE 2.0 Act (rising to 75 in 2033). The 10-year projection assumes the remaining balance grows at your expected return after each year's RMD is withdrawn. This calculator uses the Uniform Lifetime Table, which applies to nearly all owners — the exception is if your sole beneficiary is a spouse more than 10 years younger, in which case the IRS Joint Life Table applies instead and your actual RMD may be lower.
How to Use This Investment & Retirement Calculator
- 1
Enter your initial investment
Input the lump sum you plan to invest today. This is your starting principal that will begin compounding immediately.
- 2
Set your monthly contribution
Enter the amount you plan to add each month. Consistent contributions accelerate growth through dollar-cost averaging.
- 3
Input expected return and time horizon
Set your expected annual return (7–10% for stocks historically, 4–6% for bonds) and investment period. Longer time horizons amplify compounding effects dramatically.
- 4
Review the growth projection
The results show your total invested amount, earnings from compound growth, and a year-by-year projection table showing how your money grows over time.
Example Calculation
How does compound interest build wealth over time?
Starting with $10,000 and adding $500/month at an 8% average annual return for 30 years: Your total contributions would be $190,000 ($10K initial + $180K in monthly deposits). But with compound growth, your portfolio would grow to approximately $745,000.
Result: Compound interest generated $555,000 in earnings on top of your $190,000 in contributions — nearly 75% of the final value came from returns, not deposits. Starting 5 years later would reduce the final amount by roughly $230,000. Time in the market is the most powerful factor in wealth building.
What Affects Your Results
Rate of Return
Even small differences compound massively over time. 7% vs. 8% over 30 years on $100K means a difference of $200K+. Asset allocation drives your expected return.
Time Horizon
Compounding accelerates exponentially. Most of your wealth is generated in the final years — a 30-year investment earns more in its last 5 years than its first 15.
Contribution Consistency
Regular monthly investments (dollar-cost averaging) smooth out market volatility and ensure you're always buying — including during dips when prices are low.
Fees & Expenses
A 1% annual fee vs. 0.1% fee on a $500K portfolio costs you $4,500/year extra. Over 30 years, high fees can consume 25–30% of potential returns. Use low-cost index funds.
Tips & Best Practices
- Start early. Thanks to compounding, $200/month invested from age 25 to 65 at 8% returns grows to ~$700K. Waiting until 35 cuts that to ~$300K — a $400K penalty for the 10-year delay.
- Don't try to time the market. Research consistently shows that time in the market beats timing the market. Missing the 10 best trading days over 20 years can halve your returns.
- Consider tax-advantaged accounts first: 401(k) (especially with employer match), IRA, HSA. These reduce your tax drag — a 25% tax bracket investor keeps more in a tax-deferred account.
- Rebalance annually. If stocks outperform and grow from 80% to 90% of your portfolio, rebalancing back to 80% locks in gains and manages risk.
- Factor in your state's tax treatment of investment income. Some states exempt certain investment income or have lower rates on capital gains.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
At what age do RMDs start?
Under the SECURE 2.0 Act, Required Minimum Distributions must begin at age 73 (for those turning 72 after 2022). The RMD age rises again to 75 starting in 2033. Roth IRAs (unlike Roth 401(k)s before 2024) are not subject to RMDs during the original owner's lifetime.
What happens if I miss my RMD?
The IRS imposes an excise tax on missed or insufficient RMDs — 25% of the amount not withdrawn, reduced to 10% if corrected within two years. Always take your full RMD by December 31 each year (the first year has a grace period until April 1 of the following year).
How is the RMD distribution period determined?
The distribution period comes from the IRS Uniform Lifetime Table based solely on your age — for example, 26.5 at age 73, 24.6 at age 75, and 16.0 at age 85. Divide your account balance by that number to get your RMD.
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