A Roth IRA can turn regular after tax contributions into tax free income later in retirement. But it is hard to picture what those yearly deposits might grow to over time, or how much of the final balance comes from growth instead of your own contributions. This Roth IRA calculator helps you estimate your future balance and compare tax free Roth growth with a similar investment in a taxable account.
Roth IRA Calculator
How to use the Roth IRA calculator step by step
The calculator is designed for everyday investors who want a fast, visual way to see how a Roth IRA could grow over time. You do not need to know formulas or tax codes. Each input maps to a piece of your real world situation, and the results update automatically as you type.
Here is how to work through the inputs from top to bottom:
- Current age: Your age right now, in whole years. This sets the starting point for the projection.
- Retirement age: The age when you expect to start taking money out or stop contributing. The calculator uses the years between your current age and retirement age for the growth timeline.
- Current Roth IRA balance: Any money you already have in Roth IRA accounts. If you are just getting started, you can leave this at zero and focus on new contributions.
- Annual contribution: How much you plan to add to your Roth IRA each year going forward. The tool assumes you make the same contribution every year until retirement.
- Expected annual return: Your long term investment return assumption before taxes, expressed as a yearly percentage. Many retirement calculators use values between 5% and 8% for diversified stock heavy portfolios, but there is no guarantee this will match future markets.
- Tax rate on investment earnings: The combined federal and state tax rate you would expect to pay on investment income in a regular taxable account. The calculator uses this to estimate how much a non Roth investment might lose to taxes along the way.
Once you enter your numbers, the main results card shows three key outputs:
- Projected Roth IRA balance at retirement: The estimated future value of your Roth IRA, assuming the return and time period you entered. This balance is generally tax free for qualified withdrawals.
- Projected taxable account balance: The estimated future value if you invested the same starting amount and yearly contributions in a regular taxable account instead, with a reduced after tax growth rate.
- Estimated Roth IRA tax advantage: The difference between the Roth and taxable balances. A positive number shows how much more you might have in a Roth IRA thanks to tax free growth.
The second results card summarizes your assumptions and shows a simple chart. The line for the Roth IRA uses the same blue color as the main key number, while the taxable account uses the green secondary color so it is easy to tell them apart. The x axis runs from your current age to your retirement age, so you can see how much of the growth happens in the early years versus the final stretch before retirement.
Imagine you are 30 years old with $10,000 already in a Roth IRA. You plan to contribute $5,000 per year until age 65, invest in a diversified portfolio with an average 7% annual return, and your tax rate on investment income in a taxable account would be about 24%.
- Starting Roth IRA balance: $10,000
- Annual contribution: $5,000
- Current age: 30; retirement age: 65 (35 years to invest)
- Expected annual return: 7%
- Tax rate on investment earnings: 24%
Under these assumptions, the calculator would estimate that your Roth IRA could grow to roughly $846,000 by age 65. A similar taxable account investing the same amounts might reach around $570,000 after the drag from yearly taxes on investment income. That is a difference of about $275,000 in favor of the Roth IRA, even though your total contributions were the same.
Tip: Try running the calculator twice with the same contributions but slightly different return assumptions, such as 6% and 7%. This helps you see how sensitive your long term results are to investment performance that nobody can guarantee in advance.
Choosing realistic assumptions for contributions, returns, and taxes
The quality of any Roth IRA projection depends on the assumptions you choose. While nobody can know future returns or tax laws, you can choose inputs that line up with current IRS rules and long term market history rather than guesses pulled out of thin air.
On the contribution side, the IRS sets annual limits on how much you can put into IRAs each year. For 2025, the standard IRA contribution limit is $7,000, with an extra $1,000 catch up contribution available if you are age 50 or older. For 2026, the limit is scheduled to rise to $7,500, with a $1,100 catch up amount for people 50 and up. These limits apply across both Roth and traditional IRAs and require that you have at least that much earned income for the year.
If you are under 50 and planning a Roth IRA strategy for the next few years, it often makes sense to set your annual contribution in the calculator at or below the current IRS limit, unless you know you will intentionally contribute less in some years. If you are 50 or older, you can test scenarios that include the catch up contribution as long as you expect to meet the income and eligibility rules.
For the expected return, many financial planners use a long term range of around 5% to 7% per year for a diversified portfolio that is mostly invested in stocks but includes some bonds or cash. This is not a guarantee. Returns can be much higher or much lower over shorter periods, especially when inflation or market volatility spikes. Choosing a conservative return assumption can help you avoid overestimating how much money you will have.
The tax rate on investment earnings in the taxable account field should reflect your combined federal and state taxes on dividends, interest, and capital gains in a regular brokerage account. If you are in a higher income bracket or live in a state with income taxes, using 20% to 30% is common. If your income is lower and you live in a state with no income tax, a smaller number may make more sense.
| Input | Typical range to try | Why it matters |
|---|---|---|
| Annual contribution | Up to IRS limit (for example $7,000 or $7,500 plus catch up) | Determines how much fresh money you add each year on top of investment growth. |
| Expected annual return | 5% to 7% for diversified stock focused portfolios | Higher assumptions create larger projected balances but also more risk of disappointment if markets underperform. |
| Tax rate on earnings | 0% to 30% depending on your bracket and state | A higher tax rate makes the Roth IRA look more attractive compared with a taxable account. |
Note: Roth IRAs also have income based eligibility rules. If your modified adjusted gross income is above certain thresholds, your allowed Roth contribution may be reduced or phased out, and you may need to look at strategies such as backdoor Roth contributions. Always check current IRS limits before making final decisions.
Interpreting your Roth IRA results and planning next steps
Once you are comfortable with your inputs, the real value comes from interpreting the results and turning them into action. The calculator focuses on three questions: how big your Roth IRA could be at retirement, how that compares with investing in a taxable account, and how much of your final balance comes from your own contributions versus growth.
If your projected Roth IRA balance is much larger than your total contributions plus existing balance, you can see the power of tax free compounding over decades. The difference between the Roth and taxable projections shows how much of that growth might be lost to ongoing taxes if you invested in a regular brokerage account instead. A larger gap usually appears when your tax rate on investment earnings is higher, your time horizon is longer, or your expected return is stronger.
You can also use the results to answer common planning questions. For example, you might test how increasing your annual contribution from $4,000 to $6,000 affects your projected balance, or how delaying retirement from 60 to 65 changes the picture. Running several scenarios side by side can help you choose a realistic savings target rather than guessing.
At the same time, a Roth IRA calculator is just one piece of a broader retirement plan. It does not model traditional IRA deductions, future tax law changes, required minimum distributions from other accounts, or the impact of Social Security benefits. Those issues can all affect whether a Roth IRA, traditional IRA, or a mix of both is best for you overall.
| Question | What to look for in the results | Possible next step |
|---|---|---|
| Am I saving enough each year? | Compare your projected Roth balance to your target retirement savings. | Increase contributions, delay retirement, or adjust spending targets if needed. |
| Is a Roth IRA worth it versus taxable investing? | Look at the gap between the Roth and taxable account projections. | Higher gaps suggest more value from tax free growth in a Roth IRA. |
| How sensitive is my plan to returns? | Run several return assumptions and compare outcomes. | Consider a more conservative portfolio or higher savings rate if results swing widely. |
Important: This calculator is for general education only. It does not provide personalized investment, tax, or retirement advice and does not reflect every rule that applies to Roth IRAs. Before making contribution or withdrawal decisions, consider talking with a qualified financial or tax professional.
Frequently Asked Questions (FAQs)
What is a Roth IRA and how is it taxed?
A Roth IRA is an individual retirement account funded with after tax dollars. Qualified withdrawals in retirement, including investment earnings, are generally tax free if you meet IRS rules on age and holding periods. Unlike traditional IRAs, Roth IRAs do not provide an upfront tax deduction for contributions.
Does this Roth IRA calculator include IRS contribution limits?
The calculator lets you test any contribution amount, but it does not block inputs that are above the annual IRS limits. For 2025 and 2026, the IRS sets specific dollar limits for IRA contributions and separate income based phaseouts for Roth eligibility. You should check the current rules before committing to a contribution plan.
How does the calculator model taxes in the taxable account?
The taxable account projection assumes that your investment return is reduced by the tax rate on earnings that you enter. This is a simplified way to show the impact of paying taxes along the way. It does not model detailed rules for capital gains, qualified dividends, loss harvesting, or changes in your tax bracket over time.
What if my investment returns are not smooth each year?
Real markets rarely deliver the same return every year. The calculator uses a steady average annual return to keep the math clear and easy to understand. In practice, you can think of the projection as a middle of the road scenario rather than a precise forecast for every year.
Is a Roth IRA always better than a traditional IRA?
Not always. A Roth IRA can be especially attractive if you expect to be in the same or a higher tax bracket in retirement, value tax free withdrawals, or want flexibility around required minimum distributions. A traditional IRA may be more useful if you need the upfront tax deduction today and expect a lower tax rate later. Many people use a mix of account types.