Roth IRA Calculator
Project how your Roth IRA could grow. Enter your current balance, your monthly contribution, an expected annual return and the years until retirement to estimate the future value — which, with a qualified Roth, can be withdrawn tax-free.
The power of tax-free growth
A Roth IRA is a retirement account with an unusual and powerful feature: you contribute money you have already paid tax on, and in exchange, qualified withdrawals in retirement — including every dollar of investment growth — come out completely tax-free. Over a long horizon, the growth in a retirement account typically dwarfs the contributions, so making all of that growth tax-free is what gives the Roth its appeal. This calculator projects how your balance could grow and shows how much of it is the compound growth you would otherwise owe tax on.
The trade-off is timing. You forgo a tax break today in return for tax-free income later. Whether that is a good deal depends largely on whether you expect your tax rate in retirement to be similar to or higher than it is now — and on how long your money has to compound, since a longer runway makes the tax-free growth more valuable.
How to use this calculator
Enter your current balance, your monthly contribution, an expected annual return, and the years until you withdraw. The calculator compounds monthly, projects the ending balance, and separates the money you contributed from the tax-free growth stacked on top. The longer your horizon, the larger that growth slice becomes relative to your contributions.
Annual contributions are capped by the IRS, and the cap changes from year to year, with a higher allowance once you reach a certain age. There are also income eligibility limits: high earners may face a reduced or phased-out ability to contribute directly. Because these figures shift, verify the current year's contribution and income limits before maxing out rather than relying on a fixed number.
Roth IRA vs. traditional IRA
The two account types differ mainly on when you are taxed. A traditional IRA may give you a deduction now (pre-tax), grows tax-deferred, and is taxed as ordinary income when you withdraw. A Roth IRA gives no deduction now (after-tax), but qualified withdrawals are tax-free. A traditional IRA tends to favor people who expect a lower tax rate in retirement than today; a Roth tends to favor those expecting a similar or higher rate, or who simply value the certainty of tax-free income.
How it's calculated
The projection uses the future-value formula. A lump sum grows as FV = PV × (1 + r)n, where r is the periodic rate and n the number of periods; with monthly compounding the annual return is divided by 12 and years are multiplied by 12. Each monthly contribution is future-valued over its own remaining time and summed in. Because returns are reinvested and earn further returns, the balance accelerates over time — and in a Roth, none of that acceleration is taxed on qualified withdrawal.
A worked example
Suppose you start with $5,000 and contribute about $583 a month (a steady pace toward a typical annual maximum) at a 7% assumed return. Over 30 years you would contribute roughly $215,000 of your own after-tax money, yet the projected balance lands well over $700,000. In a Roth, the entire gap — more than half a million dollars of growth — could be withdrawn tax-free, whereas in a taxable account much of that growth would be reduced by tax.
| Years invested | You contribute | Est. balance | Tax-free growth |
|---|---|---|---|
| 10 years | ~$75,000 | ~$110,000 | ~$35,000 |
| 20 years | ~$145,000 | ~$320,000 | ~$175,000 |
| 30 years | ~$215,000 | ~$725,000 | ~$510,000 |
The tax-free growth column is the heart of the Roth advantage: the longer you stay invested, the larger the portion of your balance that compounding — not your own deposits — created, and all of it can be tax-free.
Tips and common mistakes
- Verify your eligibility. Income limits can reduce or eliminate direct Roth contributions for high earners; check the current rules before contributing.
- Know what you can withdraw. Your contributions (not the earnings) can generally be taken out at any time without tax or penalty; earnings have rules to qualify for tax-free treatment.
- Mind the holding requirements. Tax-free withdrawal of earnings generally requires reaching a qualifying age and meeting a holding period — pulling earnings out early can trigger tax and a penalty.
- Don't time the market. Steady annual contributions beat waiting for the "right moment"; the long horizon is what makes the Roth powerful.
- Check the limit each year. Contribution caps and income thresholds change, so confirm the current IRS figures rather than reusing last year's.
Frequently asked questions
What's the Roth IRA contribution limit?
The IRS sets an annual limit that changes over time, with a higher allowance once you're 50+. High earners may face reduced or phased-out eligibility. Check the current year's limit and income rules before maxing out.
Why is a Roth IRA attractive?
You contribute after-tax money, but qualified withdrawals — including all the growth — are tax-free. That makes the compound growth shown here especially valuable if you expect to be in a similar or higher tax bracket later.
What return should I assume?
Use a realistic long-run figure for your investments. A diversified portfolio has historically averaged mid-to-high single digits over long periods, but returns vary and aren't guaranteed.
How is a Roth IRA different from a traditional IRA?
A traditional IRA is funded with pre-tax money — you may get a deduction now, but withdrawals are taxed later. A Roth is funded with after-tax money — no deduction now, but qualified withdrawals are tax-free. The Roth tends to favor those expecting a similar or higher tax rate in retirement; the traditional those expecting a lower one.
Can I withdraw money before retirement?
Generally you can withdraw your own contributions (the money you put in) at any time without tax or penalty, since you already paid tax on it. The earnings are different — withdrawing them early, before meeting the age and holding-period rules, can trigger income tax and a penalty. Treat the account as long-term money.
Are there required minimum distributions?
Unlike traditional IRAs and many other retirement accounts, a Roth IRA has no required minimum distributions for the original owner during their lifetime. You can leave the money to keep growing tax-free for as long as you like, which makes it a flexible vehicle for both spending and estate planning.
Last updated: July 2026 · How we calculate
BriskToolbox provides estimates for general information only and is not financial advice. Investment returns are not guaranteed.