Roth IRA Calculator
Project your Roth IRA balance at retirement from your current age, annual contribution, and expected annual growth rate, plus the tax-free growth advantage.
How It's Calculated
Formula
\text{Balance} = C\left[\frac{(1+r)^t - 1}{r}\right], \quad \text{Growth Advantage} = \text{Balance} - (C \times t)This calculator projects your Roth IRA balance at retirement from a series of equal annual contributions (an ordinary annuity, each contribution applied at year-end), compounding at your expected annual growth rate. Roth IRA contributions aren't tax-deductible, but because qualified withdrawals in retirement are tax-free, the entire projected balance — including every dollar of investment growth — is never taxed. This calculator reports that growth portion (projected balance minus total contributions) as the 'tax-free growth advantage': the dollar amount of investment gains that, unlike a comparable taxable account, you won't owe tax on. This is not a tax-rate-computed savings figure — no tax rate is an input here — it is simply the growth that Roth tax treatment shields from tax.
Worked Examples
Age 30 to 65, $6,000/year, 7% growth
- Years to retirement: 65 − 30 = 35
- Total tax-free balance: $6,000 × [((1.07)^35 − 1) / 0.07] ≈ $829,296
- Total contributions: $6,000 × 35 = $210,000
- Tax-free growth advantage: $829,296 − $210,000 ≈ $619,296
Zero expected growth: age 30 to 40, $2,000/year
- With 0% growth, the balance is simply the sum of contributions: $2,000 × 10 = $20,000
- Tax-free growth advantage: $0 (no growth was generated to shield from tax)
Frequently Asked Questions
Does this calculator check IRS contribution limits or income eligibility?
No. Annual Roth IRA contribution limits and the MAGI-based income phase-out that can reduce or eliminate eligibility are set by the IRS and change from year to year. This calculator projects growth from whatever contribution amount you enter — it does not verify that amount is within the current legal limit or that you're eligible to contribute it.
Does this account for an existing Roth IRA balance?
No — this v1 calculator starts the projection from $0 and grows only your entered annual contributions. If you already have a Roth IRA balance, this projection understates your total future balance; a future version may add a starting-balance input.
What is the 'tax-free growth advantage'?
It's the investment growth portion of your projected balance — total balance minus your total contributions. Because qualified Roth withdrawals are tax-free, this growth is money you keep in full, unlike growth in a taxable account. It is not a computed tax-dollar savings figure against a specific tax rate.
How is this different from the IRA Calculator?
The IRA Calculator compares a traditional IRA's immediate tax deduction against the tax you'll owe on distribution — a single-year, tax-bracket-driven comparison with no growth projection. This Roth IRA Calculator instead projects multi-year investment growth from your contributions, since Roth IRAs aren't deductible but grow and withdraw tax-free. They intentionally answer different questions.
Does this guarantee my withdrawals will actually be tax-free?
No. This calculator assumes standard Roth tax treatment applies, but it does not verify contribution eligibility, the five-year holding rule, or qualified-distribution requirements. It is a growth projection only, not tax or eligibility advice — consult a tax professional about your specific situation.