HSA Growth Calculator — Project Your Health Savings Account's Tax-Free Growth
Example: Current HSA balance: 5000 $ · Monthly contribution: 350 $ · Expected annual return: 7 % · Years until you spend it: 25
| Projected HSA value | $312,152 |
| Total contributed | $110,000 |
| Tax-free growth | $202,152 |
Worked example
Say you have $5,000 in your HSA today and add $350 a month. At a 7% average annual return, after 25 years that balance grows to roughly $312,152 — and about $202,152 of that is tax-free growth you never had to contribute. That gap is the whole case for treating an HSA as a long-term investment account rather than a spending account for routine copays.
Frequently asked questions
What makes an HSA "triple tax-advantaged"?
Contributions go in pre-tax (lowering this year's taxable income), the balance grows tax-free, and withdrawals for qualified medical expenses come out tax-free. No other account gives you all three at once.
Can I actually invest my HSA, or does it just sit in cash?
Most HSA providers let you invest the balance above a small cash threshold in mutual funds or ETFs, just like a brokerage. That investment growth is what turns an HSA into a long-term wealth tool rather than a checking account for copays.
What happens to my HSA if I don't spend it?
Unlike a Flexible Spending Account, HSA funds roll over every year and stay yours for life, even if you change jobs or health plans. After age 65 you can withdraw for any reason (taxed like a traditional IRA) or tax-free for qualified medical costs.
How much can I contribute each year?
The IRS sets an annual maximum that is adjusted for inflation, with an additional catch-up amount once you turn 55. Check the IRS source linked below for the current year's exact limits before you max out.
Is an HSA better than a 401(k) for retirement?
They work best together. Because qualified medical withdrawals are completely tax-free, the HSA is often the single most tax-efficient dollar you can save for the healthcare costs almost everyone faces in retirement.