Roth IRA Calculator
Project the tax-free balance a Roth IRA builds from annual after-tax contributions — and see how much of the ending value is pure investment growth you'll never pay tax on.
Roth IRA growth
Example: $7,000 a year at 6.5% for 25 years → about $436,821, of which $261,821 is tax-free growth.
Where the value comes from
In the worked example — $7,000 contributed each year at a 6.5% return for 25 years — the account grows to about $436,821. You contributed $175,000 of that; the other $261,821 is investment growth. In a taxable account that growth would eventually be taxed, but in a Roth it is withdrawn tax-free — which is exactly why the Roth's advantage compounds with time horizon. Every figure is computed by the same tested engine as the calculator above.
The Roth trade-off
A Roth means paying tax now to skip it later. That bet pays off when your tax rate in retirement is similar to or higher than it is today — common for younger savers early in their careers and for anyone expecting a substantial nest egg. If you expect a much lower tax rate in retirement, a traditional pre-tax account may win. Many people hold both for tax diversification.
Why starting early matters most here
Because every dollar of Roth growth escapes tax, the tax-free compounding is worth the most over long horizons. Shifting the time-horizon input from 15 years to 30 does not double the balance — it does far more, because the growth portion (the tax-free part) expands fastest at the end. The earlier the first contribution, the larger that tax-free slice becomes.
Frequently asked questions
What makes a Roth IRA different?
You contribute money you have already paid income tax on, and in exchange qualified withdrawals in retirement — including all the investment growth — are completely tax-free. A traditional IRA is the mirror image: a deduction now, taxes later. The Roth bet is that tax-free growth is worth more than an upfront deduction, which favors people who expect similar or higher tax rates in retirement.
Is there a contribution limit?
Yes. The IRS sets an annual Roth IRA contribution limit (with a higher catch-up amount for those 50 and older), and eligibility phases out at higher incomes. The limit changes over time, so check the current figure at irs.gov before maxing out. This calculator lets you model any annual amount so you can plan around the current cap.
How is the growth modeled?
The calculator spreads your annual contribution evenly across the year and compounds monthly at your assumed return. Real contributions might be a lump sum in January or spread differently, which shifts the result slightly, but the long-run picture is the same.
Roth IRA or 401(k)?
They are not mutually exclusive, and a common order is: contribute enough to a 401(k) to get the full employer match, then fund a Roth IRA, then return to the 401(k). The match is guaranteed return; the Roth adds tax diversification. Compare the two with the 401(k) Calculator.
Not financial advice: a general educational estimate that assumes a constant return and does not enforce IRS contribution or income limits, which change yearly — verify current limits at irs.gov. Values are processed locally in your browser and never transmitted. See the methodology page.