Roth IRA Calculator
Estimate the future value of your Roth IRA, total contributions, and tax-free earnings. Compare Roth IRA growth against a taxable investment account to see the power of tax-free compounding. Plan your retirement with confidence.
What Is a Roth IRA?
A Roth IRA (Individual Retirement Account) is a tax-advantaged retirement savings account that allows you to contribute after-tax dollars. The key benefit is that your investments grow tax-free, and qualified withdrawals in retirement are completely tax-free — including all investment earnings.
Unlike traditional IRAs, Roth IRA contributions are not tax-deductible, but the tax-free growth and withdrawals make it a powerful tool for retirement planning, especially if you expect to be in a higher tax bracket in retirement.
How Does the Roth IRA Calculator Work?
The calculator projects the growth of your Roth IRA using the compound interest formula:
Future Value = P × (1 + r)n + C × [((1 + r)n − 1) / r]
Where:
P = Current balance
r = Annual return rate (as a decimal)
n = Number of years until retirement
C = Annual contribution (growing at the contribution increase rate)
Taxable Account Comparison: The calculator also projects a taxable investment account with the same contributions, applying capital gains tax on earnings to show the tax advantage of a Roth IRA.
The calculator provides a year-by-year breakdown showing your balance, contributions, and earnings over time. A chart visually compares Roth IRA growth against a taxable account.
Why Use This Roth IRA Calculator?
- Comprehensive: Projects Roth IRA balance, total contributions, and tax-free earnings.
- Comparison: Shows the difference between Roth IRA and taxable account growth.
- Free & Private: No registration, no data storage — your numbers stay on your device.
- Visual & Detailed: See year-by-year growth with a chart and breakdown table.
- Mobile-Friendly: Works on any device, from desktop to smartphone.
What Factors Affect Your Roth IRA Growth?
- Current Age: The earlier you start, the more time your money has to grow tax-free.
- Retirement Age: A longer time horizon means more compounding and higher balances.
- Annual Contribution: The more you contribute each year, the larger your retirement balance.
- Return Rate: Higher returns significantly increase your final balance.
- Contribution Increases: Increasing contributions over time accelerates growth.
- Inflation: Reduces the purchasing power of your savings — the calculator can adjust for it.
Roth IRA Contribution Limits
- 2025: $7,000 ($8,000 if age 50 or older)
- 2026: $7,500 ($8,600 if age 50 or older)
- Limits are aggregated across all traditional and Roth IRAs
- Income phase-outs apply for high earners
Roth IRA vs Traditional IRA
- Roth IRA: After-tax contributions, tax-free growth, tax-free withdrawals
- Traditional IRA: Pre-tax contributions (tax-deductible), tax-deferred growth, taxed withdrawals
- The choice depends on your current vs. future tax bracket
❓ Roth IRA FAQ
What is a Roth IRA and how does it work?
A Roth IRA is a retirement account where you contribute after-tax dollars. Your investments grow tax-free, and you can withdraw your money tax-free in retirement (after age 59½ and holding the account for at least 5 years).
What are the Roth IRA contribution limits for 2025 and 2026?
For 2025, the contribution limit is $7,000 ($8,000 if you're 50 or older). For 2026, the limit increases to $7,500 ($8,600 if 50 or older). These limits are combined across all traditional and Roth IRAs.
What is the difference between a Roth IRA and a Traditional IRA?
Roth IRA contributions are made with after-tax dollars, grow tax-free, and withdrawals are tax-free. Traditional IRA contributions may be tax-deductible, grow tax-deferred, and withdrawals are taxed as ordinary income. Roth IRAs have no required minimum distributions (RMDs) during your lifetime.
What are the income limits for Roth IRA contributions?
For 2025, the ability to contribute to a Roth IRA phases out for single filers with MAGI between $146,000 and $161,000, and for married filing jointly between $230,000 and $240,000. These limits adjust annually for inflation.
When can I withdraw from my Roth IRA without penalty?
You can withdraw your contributions (not earnings) at any time tax-free and penalty-free. For earnings to be tax-free and penalty-free, you must be 59½ or older and have held the account for at least 5 years. Exceptions apply for first-time homebuyers, disability, and other qualifying events.
What is the 5-year rule for Roth IRA withdrawals?
The 5-year rule requires that you've had a Roth IRA open for at least 5 tax years before you can withdraw earnings tax-free. The clock starts on January 1 of the year you made your first contribution.
Do I have to take Required Minimum Distributions (RMDs) from a Roth IRA?
No. Roth IRAs do not have RMDs during the account owner's lifetime. This makes them an excellent tool for estate planning and passing wealth to heirs.
Can I contribute to a Roth IRA if I have a 401(k) at work?
Yes. You can contribute to both a Roth IRA and a 401(k) in the same year, as long as you meet the Roth IRA income limits. Many employers also offer a Roth 401(k) option.
What is a Roth IRA conversion?
A Roth IRA conversion is when you move money from a Traditional IRA or other retirement account into a Roth IRA. You'll pay income tax on the converted amount, but future growth and withdrawals will be tax-free.
What investments can I hold in a Roth IRA?
You can hold a wide range of investments including stocks, bonds, mutual funds, ETFs, REITs, and even some alternative investments. The specific options depend on your brokerage or financial institution.
How does inflation affect my Roth IRA savings?
Inflation reduces the purchasing power of your savings over time. A 3% inflation rate means $1 million at retirement will have the same buying power as about $412,000 today after 30 years. Our calculator includes an inflation adjustment option.
What happens to my Roth IRA if I change jobs?
Your Roth IRA is independent of your employer and stays with you regardless of job changes. You can continue contributing as long as you have earned income and meet the income limits.
Can I withdraw my Roth IRA contributions before retirement?
Yes. You can withdraw your original contributions (not earnings) from a Roth IRA at any time, for any reason, without taxes or penalties. This flexibility makes Roth IRAs a good emergency fund backup.
What is the difference between a Roth IRA and a Roth 401(k)?
Both offer tax-free growth and withdrawals. Key differences: Roth 401(k)s have higher contribution limits ($23,500 for 2025), are employer-sponsored, and have RMDs. Roth IRAs have lower limits but more investment choices and no RMDs.
How is a Roth IRA taxed?
Contributions are made with after-tax dollars (already taxed). The account grows tax-free, and qualified withdrawals (after 59½ and 5-year rule) are completely tax-free — including all investment earnings.
What is the catch-up contribution for Roth IRA?
Individuals aged 50 and older can make an additional catch-up contribution. For 2025, the catch-up is $1,000 (bringing the total to $8,000). For 2026, the catch-up is $1,100 (total $8,600).
How do I open a Roth IRA?
You can open a Roth IRA with most major brokerages (Vanguard, Fidelity, Schwab, etc.), banks, or credit unions. You'll need to provide personal information and choose your investments. You can open one at any time during the tax year.
What is the deadline for Roth IRA contributions?
You can make contributions for a tax year up to the tax filing deadline (typically April 15 of the following year). For example, 2025 contributions can be made until April 15, 2026.
How accurate is this Roth IRA calculator?
This calculator provides estimates based on the inputs you provide. Actual results depend on market performance, contribution consistency, tax laws, and other factors. Always consult with a financial advisor for personalized retirement planning.
What is the average return rate for Roth IRA investments?
Historical average returns vary by asset allocation. A diversified portfolio of 60% stocks and 40% bonds has historically returned about 7-8% annually. More aggressive portfolios may return 8-10%, while conservative portfolios may return 4-6%. Your actual returns will vary.