1. What is the TSP Growth Calculator?

The TSP (Thrift Savings Plan) Growth Calculator estimates the future value of your retirement savings based on compound growth. It helps federal employees and military personnel project their retirement account growth over time.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• \( Present \) — Current account balance (USD)
• \( Rate \) — Expected annual growth rate (0-1)
• \( Years \) — Number of years until retirement

Explanation: The formula accounts for compound growth, where earnings are reinvested to generate additional earnings over time.

3. Importance of Retirement Planning

Details: Proper retirement planning ensures financial security in later years. Understanding how your TSP grows helps make informed decisions about contributions and investment strategies.

4. Using the Calculator

Tips: Enter current TSP balance in USD, expected annual growth rate (typically 0.05-0.08 for TSP funds), and years until retirement. All values must be valid (balance > 0, rate between 0-1, years ≥1).

5. Frequently Asked Questions (FAQ)

Q1: What's a realistic growth rate for TSP?
A: Historically, the C Fund (S&P 500) averages about 7% annually, while the G Fund (government securities) averages about 3-4%.

Q2: Should I include my contributions in this calculation?
A: This calculator shows growth of existing balance only. For complete projections, factor in future contributions separately.

Q3: How often does TSP compound?
A: TSP accounts compound daily, though this calculator uses annual compounding for simplicity.

Q4: What about inflation?
A: For real (inflation-adjusted) growth, reduce the rate by expected inflation (typically 2-3%).

Q5: Can I use this for other investments?
A: Yes, this formula works for any investment with compound growth, though actual returns may vary.