What Is a Roth IRA Calculator?
A Roth IRA calculator projects how much your retirement account could grow by the time you retire. A Roth IRA is funded with after-tax dollars, which means qualified withdrawals in retirement — including all the investment growth — are completely tax-free. This calculator takes your current balance, annual or monthly contributions, expected rate of return, and years until retirement, then shows your projected balance and how much of it is contributions versus tax-free earnings.
Because Roth growth compounds untaxed, even modest, consistent contributions can become a substantial nest egg over decades. Seeing the numbers helps you decide how much to contribute and how time and return rate shape the outcome.
How to Use the Roth IRA Calculator
- Current balance — what your Roth IRA is worth today (enter 0 if starting fresh).
- Annual contribution — how much you plan to add each year, up to the IRS limit.
- Years to retirement — how long the money will grow.
- Expected annual return — a realistic long-term rate (6%–8% is a common assumption).
- Calculate — see your projected tax-free balance and the split between contributions and earnings.
2024 Roth IRA Contribution Limits
| Age | Annual Contribution Limit |
|---|---|
| Under 50 | $7,000 |
| 50 and older (catch-up) | $8,000 |
Eligibility to contribute phases out at higher incomes; high earners may use a backdoor Roth strategy. Always confirm current-year limits with the IRS.
The Power of Tax-Free Compounding
Contributions to a Roth grow through compound interest, and because qualified withdrawals are tax-free, you keep 100% of the gains. The formula combines your starting balance growing as a lump sum plus each contribution compounding from the year it is made: Future Value = Present Balance × (1 + r)^n + Annual Contribution × [((1 + r)^n − 1) ÷ r], where r is the return rate and n is the number of years.
Roth IRA Growth Example
| Monthly Contribution | Years | At 7% Return |
|---|---|---|
| $300 | 20 | ~$156,000 |
| $500 | 30 | ~$610,000 |
| $583 ($7,000/yr) | 35 | ~$1,000,000+ |
Roth vs Traditional IRA
A Roth IRA is funded with after-tax money and grows tax-free; you pay no tax on qualified withdrawals. A Traditional IRA may give you a tax deduction now, but withdrawals in retirement are taxed as income. Roth often wins for younger savers and anyone expecting to be in the same or higher tax bracket in retirement.
Frequently Asked Questions
How much will my Roth IRA be worth?
It depends on your contributions, years invested, and return rate. Enter those values and the calculator projects your tax-free balance using compound growth.
Are Roth IRA withdrawals really tax-free?
Qualified withdrawals — taken after age 59½ and at least five years after your first contribution — are entirely tax-free, including all investment earnings.
What is the Roth IRA contribution limit?
For 2024 it is $7,000 if you are under 50 and $8,000 if you are 50 or older. Limits change periodically, so verify the current year's figure.
What rate of return should I use?
A long-term, diversified portfolio has historically returned roughly 7%–10% before inflation. Using 6%–8% is a reasonable, conservative planning assumption.
Is a Roth IRA better than a 401(k)?
They serve different roles — a 401(k) often includes an employer match and higher limits, while a Roth IRA offers tax-free growth and more investment flexibility. Many savers use both.