See What You Could Contribute to a SEP IRA
If you’re self-employed, your income can go up and down—and retirement planning often gets pushed aside. A SEP IRA is a simple way to save for the future and may also help lower your tax bill (when eligible).
The calculator below estimates your potential SEP IRA contribution based on the information you enter. It’s helpful for freelancers, consultants, business owners, and S-corp owners who want a quick answer to: “About how much could I put into a SEP IRA this year?”
A quick heads-up: SEP IRA rules are specific, and the “income” used for the calculation depends on your business setup. This estimate is meant to help you plan, not replace tax advice.
Want help choosing between a SEP IRA and a Solo 401(k)? Let’s talk.
SEP IRA Calculator
Enter your income above.
| Parameter | Value / Formula (2025) |
|---|---|
| Annual Compensation Limit | $360,000 |
| Contribution Rate | 25% of compensation |
| Annual Dollar Cap | $72,000 |
| W‑2 Employee Formula | SEP = min(0.25 × Compensation, $72,000) |
| Self‑Employed Formula | SEP = Net Earnings × 0.9235 × 20% (capped at $72,000) |