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Roth IRA Calculator

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Enter your annual contribution, expected return, and years to grow to see your Roth IRA's potential future value.

Roth IRA Calculator

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Estimated balance at retirement
$439,897.06
Total contributed
$162,500
Tax-free growth
$277,397.06
Contribution limits are set annually by the IRS and phase out at higher incomes - check the current year's limit before assuming you can contribute the full amount.

The formula

Each year: Balance = (Previous balance + Annual contribution) x (1 + Return rate) Repeated for each year until retirement
Example

$6,500/year at 7% return for 25 years, starting from $0: balance grows to about $439,897 - $162,500 contributed, the rest ($277,397) is tax-free growth.

Step-by-step guide

  1. Enter your current Roth IRA balance (0 if you're just starting).
  2. Enter your planned annual contribution and years until retirement.
  3. Enter your expected annual return to see the projected balance.

Why the tax treatment matters more than it might seem

A Roth IRA is funded with money you've already paid income tax on, but in exchange, qualified withdrawals in retirement - including all the investment growth - are completely tax-free. This is meaningfully different from a traditional IRA or 401(k), where contributions reduce your taxable income now, but withdrawals in retirement are taxed as ordinary income. Over a long enough time horizon, the tax-free growth shown in this calculator's "growth" figure represents money that would otherwise be reduced by taxes in a traditional retirement account.

Common mistakes

Assuming you can contribute any amount - Roth IRA contributions are capped annually by the IRS, and the ability to contribute phases out entirely above certain income levels.
Assuming a constant annual return - real markets are volatile year to year, so this projection is a simplified average, not a guarantee.

Frequently asked questions

What's the difference between a Roth IRA and a traditional IRA?

A traditional IRA gives you a tax deduction now, with withdrawals taxed in retirement. A Roth IRA is funded with after-tax money, but qualified withdrawals - including all growth - are tax-free.

Can I withdraw my contributions before retirement?

Generally, yes - your original contributions (not the earnings) can typically be withdrawn at any time without taxes or penalties, since you already paid tax on that money. Earnings withdrawn early may face taxes and penalties, with some exceptions.

Is there an income limit to contribute to a Roth IRA?

Yes - the ability to contribute directly phases out above certain income thresholds, which the IRS adjusts periodically. Check the current year's income limits to confirm your eligibility.

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