Roth IRA Calculator

Use this calculator to project a Roth IRA balance and tax-free growth by retirement age.

What this calculator does

The Roth IRA calculator estimates how current balance and annual contributions may grow over time. Roth IRA withdrawals can be tax-free when qualified rules are met.

It uses:

• current age and retirement age
• current Roth IRA balance
• annual contribution
• expected annual return

Roth IRA Formula

FV = P(1 + r)^n + PMT × (((1 + r)^n - 1) / r)

Where:

• FV = Roth IRA value at retirement
• P = current balance
• PMT = annual contribution
• r = annual return
• n = years until retirement

Example calculation

If:

• Current balance = 25,000
• Annual contribution = 7,000
• Expected return = 7%
• Years to retirement = 30

Then:

• Contributions grow each year
• Current balance compounds over time
• Total contributions are tracked
• Growth is tax-free if qualified

The Roth IRA may grow to hundreds of thousands by retirement.

What is a Roth IRA?

A Roth IRA is an individual retirement account funded with after-tax dollars. Qualified withdrawals in retirement are tax-free.

Why Roth IRA planning matters

• estimates tax-free retirement assets
• shows contribution growth over time
• helps compare Roth and Traditional accounts
• supports long-term tax diversification

When to use this calculator

• projecting Roth IRA growth
• testing contribution levels
• comparing retirement ages
• estimating tax-free growth

Common mistakes

• ignoring income eligibility rules
• exceeding contribution limits
• assuming all withdrawals are qualified
• forgetting contribution limits change over time

Roth IRA vs Traditional IRA

Roth IRA contributions are after-tax and qualified withdrawals are tax-free. Traditional IRA contributions may be deductible, but withdrawals are usually taxable.

The better choice often depends on current and future tax rates.

FAQs

What is a Roth IRA?

A Roth IRA is an after-tax retirement account with potential tax-free qualified withdrawals.

How do you calculate Roth IRA growth?

Project current balance and annual contributions forward using compound returns.

What is a good Roth IRA contribution?

A good contribution is as much as you can afford up to the annual IRS limit.

What is the difference between Roth IRA and Traditional IRA?

Roth uses after-tax money. Traditional often uses pre-tax money.