Roth IRA Calculator
Project a Roth IRA: after-tax contributions in, tax-free growth, tax-free qualified withdrawals out. What you see is what you keep — the statement shows contributions and growth separately.
Tax paid once, at the door, never again
The Roth bargain: contribute money that has already been taxed, and everything after — decades of growth included — comes out tax-free in qualified retirement withdrawals. The projection below therefore needs no tax line: the ending balance is, under current rules, spendable balance.
Balance = current balance grown yearly + each year's contribution grown for its remaining years
Example: $20,000 in place, $6,500 a year at 7% for 25 years: contributions total $182,500 and the balance reaches about $524,000 — meaning roughly $341,000 of growth that will never be taxed if withdrawn qualified. A traditional account with the same projection would owe tax on nearly all of it.
The quiet superpower: contributions come back
Roth contributions (not earnings) can generally be withdrawn at any time without tax or penalty, because the tax was prepaid — a flexibility no other retirement account matches. It is an emergency feature, not a plan: money withdrawn stops compounding, and the chart shows what compounding was doing.
How this is calculated
Annual compounding at the entered return; contributions added at each year end, matching the site convention. IRS contribution limits and income eligibility phase-outs change over time and are not enforced by the calculator — check the current year's limits before assuming the entered contribution is permitted. 'Qualified' means the IRS conditions on age and the five-year rule are met.
Frequently asked questions
What are the current Roth IRA limits?
They are set per year by the IRS, with a catch-up amount from age 50, and eligibility phases out at higher incomes. The figure changes often enough that this page refuses to print one — check irs.gov for the year you are contributing.
Roth or traditional — which wins?
It reduces to tax rates: pay at today's rate (Roth) or retirement's rate (traditional). Low-rate years (early career, a gap year) favor Roth; peak-earning years favor traditional. The traditional IRA calculator runs its side.
Can I have both a Roth IRA and a 401(k)?
Yes, subject to each account's own rules and limits — they are separate buckets. Many savers use a Roth 401(k) option too, which follows Roth tax treatment inside the employer plan.
What if I need the earnings early?
Non-qualified earnings withdrawals generally bring income tax plus a 10% additional tax before 59½, with exceptions (first-home, disability, education nuances). Contributions, again, are the flexible part.
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