Roth IRA Calculator

The Roth IRA Calculator shows how your retirement savings grow tax-free through the power of compound interest. Enter your current balance, annual contribution, expected return rate, current age, and retirement age to see your projected balance, total contributions, and investment earnings. Understand how starting early and maximizing contributions transforms modest annual deposits into significant retirement wealth — all withdrawable tax-free after age 59½.

Roth IRA Calculator
Informational tool — verify with official sources.

Roth IRA Calculator

Project your Roth IRA growth over time with annual contributions and compound interest.

BALANCE AT 65

How Roth IRA Calculator Works

Because Roth IRA contributions grow and are withdrawn tax-free in retirement, the size of that tax-free balance depends heavily on how early you start and how consistently you contribute. This Roth IRA calculator projects your balance year by year, adding your annual contribution and applying your expected return, from your current age to your planned retirement age.

Formula: Starting from your Current Balance, for each year from Current Age to Retirement Age: Balance = (Balance + Annual Contribution) × (1 + Expected Annual Return). Total Contributions = Current Balance + (Annual Contribution × Number of Years). Investment Earnings = Final Balance − Total Contributions.

  • Current age — your age today, used to determine how many years your money has to grow
  • Retirement age — the age at which you plan to stop contributing and start withdrawing
  • Current balance — how much is already in your Roth IRA
  • Annual contribution — how much you plan to add to the account each year
  • Expected annual return — the yearly growth rate you expect your investments to earn, on average

Example Scenarios

Current BalanceAnnual ContributionReturn RateYears to RetirementFinal Balance
$0$5,0007%5≈ $30,766
$10,000$3,0006%5≈ $31,308
$0$6,0008%5≈ $38,016
$50,000$7,0007%3≈ $85,332

Roth IRA Calculator FAQ

What’s the difference between a Roth IRA and a traditional IRA?Roth IRA contributions are made with after-tax dollars, so qualified withdrawals in retirement, including all the growth, are tax-free. Traditional IRA contributions are often tax-deductible upfront, but withdrawals in retirement are taxed as ordinary income instead.
Is there an income limit to contribute to a Roth IRA?Yes, the IRS sets income limits that phase out or eliminate your ability to contribute directly to a Roth IRA above certain earnings levels, and these limits are adjusted periodically. Check the current IRS guidelines for the exact thresholds that apply to your filing status.
Why does this calculator add the contribution before applying growth each year?It models contributions as being made at the start of each year, then growing for the full year alongside your existing balance. This is a common simplifying assumption; contributing later in the year would produce a somewhat smaller final balance.
Can I withdraw my Roth IRA contributions before age 59½ without penalty?Generally, yes — you can withdraw the amount you originally contributed (not the earnings) at any time without taxes or penalties, since that money was already taxed. Withdrawing earnings early, however, can trigger taxes and penalties unless an exception applies.
What return rate should I use for the “expected annual return” field?There’s no single correct number since future returns aren’t guaranteed, but many long-term investors use a conservative historical average for a diversified stock portfolio as a starting point. Try running the calculator at a few different rates to see a range of outcomes.
Does this calculator account for annual contribution limit increases over time?No, it uses the flat annual contribution amount you enter for every year of the projection. In reality, the IRS periodically adjusts Roth IRA contribution limits, so your actual maximum contribution may change from year to year.

Related Calculators

A Roth IRA is often just one piece of a broader retirement plan. The 401k calculator can help you see how employer-sponsored contributions stack alongside your Roth IRA, the retirement calculator looks at your overall retirement readiness, and the RMD calculator is worth checking if you also hold tax-deferred accounts subject to required minimum distributions.

The Roth IRA calculator projects tax-free growth of your Roth IRA with compound interest and annual contributions through retirement.

Compound Growth Formula

FV = P×(1+r)^n + C×[(1+r)^n − 1]/r P=current balance, C=annual contribution, r=return rate, n=years

Contribution Limits (2024)

Age Limit Income Limit (Single)
Under 50 $7,000 $161,000 MAGI
50+ $8,000 $161,000 MAGI

Roth vs Traditional IRA

  • Roth: After-tax contributions → tax-free withdrawals. Best if you expect higher taxes later.
  • Traditional: Pre-tax contributions → taxed withdrawals. Best if you expect lower taxes later.
Starting at 25: $7K/yr at 7% = $1.5M by 65
Starting at 35: $7K/yr at 7% = $708K by 65
10 extra years more than doubles the balance.

Frequently Asked Questions

What is a Roth IRA?

A Roth IRA is a retirement account funded with after-tax money. Your investments grow tax-free, and qualified withdrawals in retirement are also tax-free once you meet the age and holding-period requirements.

What is the Roth IRA contribution limit?

Contribution limits are set by the IRS and can change over time. The calculator lets you estimate your savings using your planned annual contribution, regardless of the current limit.

What investment return should I assume?

Many long-term investors use 7% as a reasonable inflation-adjusted estimate. Conservative portfolios may average around 5%, while more aggressive stock-heavy portfolios may target 9% or more, though actual returns are never guaranteed.

Can I withdraw money early?

You can generally withdraw your original contributions at any time without tax or penalty. Investment earnings may be subject to taxes and penalties if withdrawn before meeting IRS qualification rules.

What if my income is too high to contribute directly?

Some higher-income earners use a Backdoor Roth IRA strategy by contributing to a Traditional IRA and then converting it to a Roth IRA. Consider consulting a tax professional before using this approach.

Should I choose a Roth IRA or a 401(k)?

Both offer valuable retirement benefits. Many people contribute enough to a 401(k) to receive the full employer match first, then invest additional retirement savings in a Roth IRA if eligible.

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