Roth IRA Calculator
Free Roth IRA calculator — project tax-free growth with annual contributions capped at IRS limits.
Important: By using this page, you agree that calculator or tool results, charts, About explanations, quick tips, and formulas are for informational use only — not professional advice. You assume all risks of relying on them. See the full disclaimer below and our Terms of Service.
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How it works
Enter annual contribution, years, expected return, age, and current balance. Contributions are capped at IRS limits automatically.
About Roth IRA Calculator
Informational only — not professional advice. Report an error.
You keep hearing that Roth IRAs are magic — fund with after-tax dollars, grow tax-free, withdraw in retirement without federal income tax on qualified distributions. The magic is mostly time: decades of compounding on money the IRS never taxes again. This calculator projects balance from annual contributions capped at IRS limits including age-50 catch-up.
Enter intended annual contribution, years to invest, expected return, current age, and existing Roth balance. The tool applies the contribution limit, compounds monthly, and splits total balance into contributions versus investment growth. Even partial contributions beat delaying — five years of $4,000 at 7% grows to roughly $23,000 before adding later years.
Maxing Roth early in a career lets more dollars participate in long compounding. Income limits may block direct Roth contributions; backdoor Roth strategies exist but carry complexity this tool does not model. Coordinate with 401(k) deferrals so total retirement savings fit your budget.
Growth line shows tax-free compounding above what you contributed. If your intended contribution exceeds the cap, only the limited amount is modeled — increase 401(k) or taxable saving for overflow. Fund Roth early in the year for extra months of growth; catch-up contributions apply at age 50 and above.
Projections assume constant return — actual markets vary. Spousal Roth IRAs allow a working spouse to fund a non-working partner's account when filing jointly, doubling household tax-free bucket capacity.
Starting a Roth in a low-income year — during school, sabbatical, or early retirement before Social Security — can be especially efficient when marginal rates are temporarily low. Keep Roth for tax diversification alongside traditional 401(k). Not tax or investment advice.
The five-year rule and qualified withdrawal age requirements mean Roth is best when you can leave money invested for years — if you might need the cash within five years, taxable savings or an emergency fund may be more appropriate.
Quick tips
- Fund early in the calendar year — January beats December for months of growth.
- Catch-up contributions kick in at age 50; do not forget them if you are eligible.
- Tax diversification means holding both Roth and traditional buckets in retirement.
- Compare tax paths with the Traditional vs Roth IRA Calculator when choosing where to save next.
Formulas
effectiveContribution = min(intended, IRS limit + catch-up if age ≥ 50)balance = compound(existing + effectiveContribution, return, years)
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