This tool helps you estimate the potential growth of your First Home Savings Account (FHSA) based on your contributions and investment returns.
How to Use the FHSA Estimator
This calculator helps you estimate the future value of your First Home Savings Account (FHSA) considering initial and annual contributions, interest rate, and applicable tax rate.
Using the Calculator
- Enter your initial contribution amount.
- Enter your expected annual contribution amount.
- Specify the number of years you plan to contribute.
- Enter the estimated annual interest rate as a percentage.
- Input the tax rate that applies to the interest earned.
- Click “Calculate” to find out the estimated future value of your FHSA.
How It Calculates
The calculator uses the provided initial contribution and adds annual contributions. Each year, it calculates interest on the total amount and subtracts the calculated tax on this interest. The final amount estimated is displayed as the result.
Calculator Limitations
Please note that the FHSA estimator assumes constant annual interest and tax rates. The actual growth may vary due to changes in interest rates, tax policies, and other factors. Thus, the result is an estimate and not a guarantee of the actual future value of your FHSA.
Use Cases for This Calculator
Calculate Maximum Contribution for Current Year
Enter your current income and age to estimate the maximum amount you can contribute to your Flexible Health Spending Account (FHSA) for the year. This will give you a clear idea of how much you can save on taxes by maximizing your FHSA contributions.
Estimate Tax Savings from FHSA Contributions
Input your expected FHSA contribution amount for the year to automatically calculate your potential tax savings. This will help you plan your finances better and optimize your tax benefits through strategic FHSA contributions.
Determine FHSA Contribution for Medical Expenses
Enter your anticipated medical expenses for the year to see the recommended FHSA contribution amount. This will guide you in setting aside the right funds in your FHSA to cover medical costs and save on taxes simultaneously.
Compare FHSA vs. Traditional Health Insurance Costs
Input your health insurance premium costs for both FHSA and traditional plans to compare the total expenses. This comparison will help you make an informed decision on which plan offers you better cost savings based on your health needs.
Calculate FHSA Balance Growth Over Time
Enter your current FHSA balance, annual contribution, and expected interest rate to forecast your account balance over a specified period. This projection will give you a clear picture of how your FHSA funds can grow over time with accrued interest.
Estimate FHSA Withdrawals for Qualified Medical Expenses
Input your planned qualified medical expenses to determine the amount you can withdraw from your FHSA without facing tax penalties. This estimation will help you effectively utilize your FHSA funds for eligible healthcare costs.
Project FHSA Balance After Qualified Medical Expenses
Enter your FHSA balance and the amount you intend to withdraw for medical expenses to see the remaining account balance. This projection will illustrate how your FHSA fund will be impacted after covering eligible healthcare costs.
Plan FHSA Contributions for Family Members
Input the number of family members covered under your FHSA to calculate the optimal contribution amount for all beneficiaries. This planning exercise will assist you in managing FHSA funds efficiently for the entire family’s medical needs.
Estimate FHSA Rollover Amount at Year-End
Enter your current FHSA balance and projected contributions to calculate the rollover amount at the end of the year. This estimation will show you how much of your unused funds can be carried forward to the next year, ensuring no wastage of FHSA savings.
Calculate Tax Penalty for Non-Qualified FHSA Withdrawals
Input the amount withdrawn from your FHSA for non-eligible expenses to calculate the tax penalty incurred. This calculation will demonstrate the financial repercussions of using FHSA funds for non-qualified purposes, helping you make informed decisions.