Roth IRA Calculator
Estimate your tax-free retirement savings with a Roth IRA
What is a Roth IRA?
A Roth IRA (Individual Retirement Account) is a special retirement savings account available in the U.S. It allows you to contribute after-tax income, and your investments grow tax-free. When you retire, you can withdraw your money — including profits — without paying taxes, as long as certain conditions are met.
It’s a powerful tool for building long-term, tax-free wealth, especially if you expect to be in a higher tax bracket in retirement.
How This Calculator Helps
Our Roth IRA Calculator helps you estimate how much money you could accumulate in your Roth IRA by retirement based on:
- Your current age
- Retirement age
- Annual contribution
- Expected rate of return
- Current savings (if any)
It shows how your money grows year by year and how much of that total is made up of contributions vs. investment gains — all tax-free.
This tool helps you:
- Understand the long-term benefits of a Roth IRA
- Compare your potential Roth IRA savings to other retirement options
- Set realistic financial goals for retirement
How to Calculate Roth IRA Growth Manually
You can estimate your Roth IRA balance with the compound interest formula:
Final Value = P × (1 + r)ⁿ + (C × [(1 + r)ⁿ - 1] ÷ r)
Where:
- P = current savings
- C = annual contribution
- r = annual return rate (as a decimal, e.g. 0.07 for 7%)
- n = number of years until retirement
Example:
- Age: 30, Retirement age: 60
- Contribute $6,000 per year
- Return rate: 7%
- No current savings
Final Value ≈ $566,000+ (from contributions and compound growth, tax-free)
FAQ - Roth IRA Calculator
Why choose a Roth IRA over a traditional IRA?
Roth IRA contributions are made after tax, but withdrawals (including earnings) are tax-free. This is great if you expect your tax rate to be higher in retirement. Traditional IRAs are taxed later when you withdraw the money.
Who can open a Roth IRA?
Anyone with earned income under the IRS income limits can open one. In 2025, for example, contribution limits begin to phase out at $146,000 for single filers and $230,000 for married couples filing jointly.
What’s the maximum Roth IRA contribution?
For 2025:
- Up to $6,500 annually (under age 50)
- Up to $7,500 (age 50 or older)
Limits can change annually based on IRS updates.
What if I withdraw money early?
Withdrawals of contributions can be made anytime tax-free. However, withdrawing earnings before age 59½ (or without meeting the 5-year rule) may incur taxes and penalties.
Can I lose money in a Roth IRA?
Yes, because Roth IRA investments are subject to market risk. However, over long periods, diversified investments tend to grow. Your contributions are safe, but earnings can fluctuate.