Roth IRA Calculator

Formula

Balance = today's balance × (1 + r)ⁿ + yearly contribution × ((1 + r)ⁿ − 1) ÷ r

Today's balance compounds for the whole period, and each year's contribution compounds from the year it is made, counted at year end. Because Roth contributions are made from income that has already been taxed, qualified withdrawals in retirement — growth included — are not taxed again, which is why the growth is labelled tax-free.

Worked example

Contributing $7,000 a year from 30 to 60 at an assumed 7% builds about $661,226. Only $210,000 of that was paid in; the other $451,226 is growth that a Roth IRA lets you withdraw tax-free in retirement.

Where this can give the wrong answer

• For 2026 the most you can contribute across all your IRAs is $7,500, or $8,600 from age 50. Entering more is flagged, but the projection still runs so you can model future years, when the limit will be higher.
• Eligibility phases out with income: between $153,000 and $168,000 for single filers and heads of household, and between $242,000 and $252,000 for married couples filing jointly, in 2026. Above the range you cannot contribute directly.
• Contributions also can't exceed your taxable compensation for the year, and the limit covers all your traditional and Roth IRAs combined.
• Withdrawing growth before age 59½, or before the account is five years old, can mean tax and a penalty. Tax-free treatment applies to qualified distributions only.
• The limits are revised every year, usually in November. This page shows 2026 figures.

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