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Calculation Machine

Roth IRA Calculator

Tax-free retirement growth projection.

Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths

Your values

ⓘ Live results

Results
Tax-free balance
$813,470.61
Total contributed
$230,000.00
Tax-free growth
$583,470.61
Tax saved vs taxable account
$128,363.53
Annual income at 4%
$32,538.82

Quick answer

A Roth IRA grows from after-tax contributions, and qualified withdrawals after age 59½ (with the account open at least five years) are tax-free. The projection compounds your balance and yearly contributions at an expected return. Starting with $20,000 and adding $7,000 a year at 7% for 30 years gives about $813,000, of which roughly $583,000 is tax-free growth.

What the Roth IRA calculator does

This calculator projects what a Roth IRA could be worth at retirement from your current balance, a fixed yearly contribution and an average annual return. It splits the result into what you put in and what the investments earned, and estimates the tax that growth would have cost if it were taxed as income at your expected retirement tax rate.

Contributions are made with money you have already paid tax on, so there is no upfront deduction. The payoff comes later: qualified withdrawals, including all the growth, are free of federal income tax, and the original owner never has to take required minimum distributions.

The projection assumes the same contribution every year, added at the end of the year, and a steady return. Contribution limits rise over time and depend on income, so check the current IRS figures. To decide between Roth and pre-tax saving, use the Roth vs traditional calculator; to see a whole retirement picture, try the retirement savings calculator.

The formula

Balance = B × (1 + r)ⁿ + A × [(1 + r)ⁿ − 1] ÷ r; tax-free growth = Balance − (B + A × n)

Formula variables
SymbolMeaningUnit
BCurrent Roth IRA balance$
AContribution made each year$ per year
rExpected annual return as a decimal—
nYears until retirementyears

This is the future value of a lump sum plus an ordinary annuity with annual compounding. The "tax saved" figure multiplies the growth by the retirement tax rate you enter — the tax you would pay on that growth if it came out of a fully taxable source such as a traditional IRA. It ignores fees, inflation and the value of any upfront deduction a traditional account would give. Withdrawal rules come from IRS Publication 590-B.

Worked examples

Maxing out for 30 years

A 35-year-old with $20,000 in a Roth IRA contributes $7,000 a year and expects 7% until retiring at 65, when they expect a 22% tax rate.

Inputs

  • Current balance20000 $
  • Annual contribution7000 $
  • Annual return7 %
  • Years to retirement30
  • Retirement tax rate22 %

Result

  • Tax-free balance$813,470.61
  • Total contributed$230,000.00
  • Tax-free growth$583,470.61
  • Tax saved vs taxable account$128,363.53
  • Annual income at 4%$32,538.82

About $813,000 at retirement from $230,000 of contributions. Taxing the $583,000 of growth at 22% would cost about $128,000, which the Roth avoids.

Starting from zero at 25

A 25-year-old opens a Roth IRA with nothing and contributes $7,000 a year for 40 years at 7%.

Inputs

  • Current balance0 $
  • Annual contribution7000 $
  • Annual return7 %
  • Years to retirement40
  • Retirement tax rate22 %

Result

  • Tax-free balance$1,397,445.78
  • Total contributed$280,000.00
  • Tax-free growth$1,117,445.78
  • Tax saved vs taxable account$245,838.07
  • Annual income at 4%$55,897.83

Close to $1.4 million, with over $1.1 million of it growth. Ten extra years of compounding, even with no starting balance, finishes about 70% higher than the 30-year example.

Late-career saver using catch-up

A 50-year-old with $100,000 already in a Roth contributes $8,000 a year (including the catch-up) for 15 years at 6%, expecting a 24% bracket.

Inputs

  • Current balance100000 $
  • Annual contribution8000 $
  • Annual return6 %
  • Years to retirement15
  • Retirement tax rate24 %

Result

  • Tax-free balance$425,863.58
  • Total contributed$220,000.00
  • Tax-free growth$205,863.58
  • Tax saved vs taxable account$49,407.26
  • Annual income at 4%$17,034.54

About $426,000 by 65, with roughly $206,000 of tax-free growth. At 4% that supports about $17,000 a year of tax-free income.

Roth IRA withdrawal rules at a glance

Contributions and earnings are treated differently. Withdrawals are taken in order: contributions first, then conversions, then earnings.

Federal tax treatment of Roth IRA withdrawals
What you withdrawBefore 59½After 59½ and 5 years
Your contributionsTax- and penalty-free any timeTax- and penalty-free
EarningsUsually income tax plus 10% penalty, with exceptionsTax-free (qualified distribution)
Converted amountsPenalty-free once each conversion is 5 years oldTax-free

Contribution limits and who can contribute

  • Annual limit: $7,000 for 2025, or $8,000 if you are 50 or older. The IRS raises the limit periodically for inflation, so check the current year's figure. The limit is shared across all your traditional and Roth IRAs.
  • Earned income: you can contribute only up to your taxable compensation for the year. A spouse with little or no income can contribute based on the other spouse's earnings (a spousal IRA).
  • Income limits: the amount you can put in directly is reduced and then eliminated above income thresholds set each year by the IRS. Higher earners sometimes contribute to a traditional IRA and convert it (a "backdoor" Roth), which has its own tax rules.
  • Deadline: contributions for a tax year can be made until the tax filing deadline the following April.

When a Roth beats a traditional IRA

If your tax rate is the same now and in retirement, a Roth and a traditional IRA end up with the same after-tax money for the same pre-tax investment. The Roth wins when you expect a higher tax rate later — common early in a career — and the traditional account wins when you expect a lower one.

Roths also have advantages beyond the rate: no required minimum distributions, tax-free money that does not raise your taxable income in retirement, and contributions you can reach in an emergency. Many people hold both to keep flexibility. If your employer offers a match, capturing it in the 401(k) usually comes first.

How to use the Roth IRA Calculator

  1. 1Enter your current Roth IRA balance from your latest statement, or 0 if you are opening one.
  2. 2Enter how much you plan to contribute each year, within the IRS limit for your age.
  3. 3Set an expected annual return — 6–7% is a common long-run assumption for a stock-heavy portfolio.
  4. 4Enter years until retirement and the tax rate you expect then, and read the tax-free balance and growth.

Frequently asked questions

How much will my Roth IRA be worth in 30 years?

It depends on contributions and returns. Contributing $7,000 a year for 30 years at 7% with no starting balance grows to about $661,000; at 5% it would be about $465,000.

Can I withdraw my Roth IRA contributions early?

Yes. The money you contributed can come out at any time without tax or penalty. Only the earnings are restricted before age 59½ and the five-year rule.

What is the Roth IRA five-year rule?

Earnings are only tax-free once at least five tax years have passed since your first Roth IRA contribution and you are 59½ or meet another exception. Each conversion also has its own five-year clock for the penalty.

Do Roth IRAs have required minimum distributions?

Not for the original owner. You can leave the money invested for life, and most heirs must then empty an inherited Roth within 10 years, still tax-free.

Can I contribute to a Roth IRA and a 401(k) in the same year?

Yes. The IRA and 401(k) limits are separate, so you can contribute to both, subject to the Roth IRA income limits.

References

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