Roth IRA Calculator

How to use this calculator

Enter your current Roth IRA balance, the amount you plan to contribute each year, the average annual return you expect, and how many years remain until you retire. The calculator projects your future balance and splits it into the money you put in versus the growth that compounded on top. Because a Roth IRA is funded with after-tax dollars, that entire ending balance — including all the growth — can be withdrawn tax-free in retirement, so the tax owed line reads $0.

How this is calculated

We grow your current balance at your chosen annual return, then add each year's contribution and compound it through to retirement. Your total contributed is your starting balance plus every annual deposit. Investment growth is the difference between the projected balance and what you contributed. The math uses a standard future-value formula: FV = balance × (1+r)^years + contribution × (((1+r)^years − 1) / r), where r is your annual return. Returns are assumed constant for simplicity — real markets rise and fall, so treat this as a long-run estimate.

Educational estimate, not investment or tax advice — see our disclaimer.

A worked example

Suppose you already have $5,000 in a Roth IRA, you contribute $7,000 a year, you expect a 7% annual return, and you have 30 years until retirement. Over that period you personally put in $5,000 plus $210,000 of contributions, for $215,000 of your own money. Thanks to compounding, the balance often grows to roughly $745,000. That means more than half a million dollars came from growth alone — and because it is a Roth, you can withdraw the whole amount tax-free once you qualify. The tax owed line stays at $0 throughout.

Why the Roth structure is powerful

With a traditional IRA you get a tax break today but pay income tax on every dollar you withdraw later, including decades of growth. A Roth flips that: you pay tax on your contributions now, then everything that compounds afterward is yours to keep. If you expect to be in the same or a higher tax bracket in retirement, paying tax on the smaller seed today rather than the much larger harvest later is usually the better deal. A Roth also has no required minimum distributions during your lifetime, so the balance can keep compounding tax-free for as long as you like.

Contribution limits change every year

The IRS sets annual Roth IRA contribution limits, and they are adjusted periodically for inflation. There are also income thresholds that can reduce or eliminate your ability to contribute directly. Both the contribution cap and the income phase-out ranges change from year to year, so always confirm the current figures with the IRS or a qualified advisor before maxing out. This calculator lets you model any contribution amount, but make sure the number you use is actually allowed for your situation and tax year.

To see how a Roth fits your broader plan, try our retirement calculator, or explore the raw power of compounding with the compound interest calculator.