How this calculator works
A Trump account is a US savings and investment account for a child, created by legislation in 2025. Eligible children born during the pilot window receive a $1,000 federal contribution at birth, and families, employers and others can add money each year within an annual cap. The account is invested, so its value depends on the contribution schedule and on the return the investments earn. This calculator projects the balance to age 18 under a steady return, assuming contributions land at the end of each year. It also deflates the result by inflation, because a dollar in eighteen years buys less than a dollar today; the real balance is the figure to compare with prices you know. The projection is deliberately simple. Real returns vary year to year, and a bad decade early on cannot always be made up later. The three scenarios are a rough spread rather than a forecast: 4% is cautious for a diversified portfolio, 7% is close to the long-run historical return on US equities before costs, and 10% is optimistic. Investment fees, taxes on withdrawals and any change to the contribution cap are not modelled. Check the current rules, including the annual contribution limit and who may contribute, with the IRS or a tax professional before relying on a figure.
Formula
Years = 18 - current age. Balance at 18 = starting balance x (1 + r)^years + annual contribution x ((1 + r)^years - 1) / r, with r the annual return; when r is zero the second term is annual contribution x years. Growth = balance - starting balance - total contributions. Balance in today's dollars = balance / (1 + inflation)^years.
Worked example
A newborn with a $1,000 starting balance and $5,000 contributed at the end of each year, at a 7% return. After 18 years the balance is $1,000 x 1.07^18 + $5,000 x (1.07^18 - 1) / 0.07 = $3,379.93 + $169,995.16 = $173,375.09. Contributions total $91,000, so growth is $82,375.09. At 2.5% inflation the real balance is $173,375.09 / 1.025^18 = $111,162.20, which is what it would feel like in today's money.
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Frequently asked questions
How much can be contributed each year?
The law set an annual cap of $5,000 per child, indexed after 2026, with additional contributions allowed by employers and others within limits. The cap can change, so check the current IRS guidance before planning around it.
Who can put money in?
The account is for the child, and contributions can come from family, friends and employers within the annual cap. The exact rules on who may contribute and the tax treatment of withdrawals depend on the legislation and later guidance.
What happens at age 18?
The account becomes available to the child under the rules for the programme. The projection stops at 18 because that is the standard comparison point, not because growth stops.
Why show both future and today's dollars?
Because a large future balance can be misleading. At 2.5% inflation, prices roughly double in about 28 years, so $173,375 in eighteen years buys roughly what $111,162 buys today. The real figure is the fair comparison.
Is a 7% return realistic?
It is close to the long-run historical return on US equities before fees, and above what a bond-heavy portfolio has delivered. Treat it as a middle scenario, and plan around the conservative one if the money is needed for a fixed date.