Roth IRA Calculator — Tax-Free Retirement Growth
See how your Roth IRA can grow tax-free: enter your annual contribution, current balance, expected annual return and years to retirement to project your final balance — plus the split between what you put in and what the market adds.
$
$
%
years
Tax-free at qualified withdrawal — contributions grow with no taxes on gains
$661,226
TotalContributions
31.8%
Investment gains
68.2%
- 1
Growth factor
(1 + 7% ÷ 100)^30 = 7.6123How $1 grows over the full period at the annual return rate. - 2
Contribution future value
7,000 × (7.6123 − 1) ÷ 0.07 = 661,225.5 - 3
Projected balance
661,225.50
How does this calculator work?
A Roth IRA grows tax-free: Balance = B₀ × (1+r)^n + C × [(1+r)^n − 1] / r. Contribute the 2025 limit of $7,000/year ($8,000 at 50+) and invest in a broad index fund over decades — compounding turns consistent annual contributions into a large, withdrawal-tax-free balance at retirement.
Formula
How this is calculated
A Roth IRA is a US individual retirement account where contributions are made with after-tax dollars, and all qualified withdrawals in retirement are completely tax-free — including the investment gains. This calculator projects the account balance assuming you contribute the same fixed amount at the end of each year for the full period.
The math combines two future-value streams. Your existing balance (B₀) is compounded annually: B₀ × (1+r)^n. Your annual contributions (C) form an ordinary annuity whose future value is C × [(1+r)^n − 1] / r — the standard annuity formula. The sum is your projected balance. Because Roth IRA withdrawals are tax-free, the entire amount shown is yours to spend in retirement — a key advantage over traditional IRAs, where withdrawals are taxed as ordinary income.
For 2025, the IRS contribution limit is $7,000 per year ($8,000 if you are age 50 or older); these figures are editable estimates that change with inflation each year. Income phase-out limits also apply at higher incomes. The model uses a fixed nominal return rate and does not account for contribution-limit changes over time, market volatility, inflation, or fees — it is a planning illustration, not a guarantee.
Frequently asked questions
For 2025 the IRS sets the annual Roth IRA contribution limit at $7,000 (or $8,000 if you are 50 or older — the "catch-up" allowance). Income phase-outs begin at $146,000 for single filers and $230,000 for married filing jointly. These figures change annually; check IRS.gov for the latest.
There is no guaranteed rate. A broad US stock-index fund has returned roughly 10% nominal (about 7% after inflation) per year on average over the past century, but results vary widely decade by decade. A common planning assumption is 6–8% nominal. Use a conservative figure to avoid over-estimating.
A Roth IRA is generally better if you expect to be in a higher tax bracket in retirement than now: you pay taxes today at the lower rate and all growth comes out tax-free. A Traditional IRA is better if you expect to be in a lower bracket later and prefer the upfront tax deduction. Consult a financial adviser for your situation.
Also known as
TG we-Calculate Editorial Team. (2026). Roth IRA Calculator — Tax-Free Retirement Growth [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/roth-ira-calculator
TG we-Calculate Editorial Team. "Roth IRA Calculator — Tax-Free Retirement Growth." TG we-Calculate. 2026. https://we-calculate.com/calculator/roth-ira-calculator.
TG we-Calculate Editorial Team, "Roth IRA Calculator — Tax-Free Retirement Growth," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/roth-ira-calculator
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