Roth IRA Calculator
This Roth IRA calculator projects your tax-free retirement balance based on your current savings, monthly contributions, and expected investment growth. Enter your numbers to see how much of your eventual balance is your own money versus tax-free growth.
Your age today.
When you plan to stop contributing.
What you have saved so far.
2025 IRS limit is $7,000/year ($583/month), or $8,000/year if you're 50+ — check current limits.
A long-run average for your Roth IRA investments.
Projected balance at retirement
$1,176,623
Tax-free, assuming qualified withdrawals in retirement.
How to use this roth ira calculator
- 1Current age, retirement age and current balance: your timeline and starting point.
- 2Monthly contribution: stay within the current IRS annual limit ($7,000/year for most people in 2025, $8,000/year if you're 50 or older — check current limits, as these are indexed for inflation).
- 3Expected annual return: a long-run average — 7% is a common assumption for a diversified stock-heavy portfolio.
Understanding your results
Projected balance is your total tax-free nest egg at retirement, assuming qualified withdrawals (the account has been open 5+ years and you're 59½ or older). Tax-free growth earned is the real advantage of a Roth — every dollar of investment gain here is never taxed again, unlike a traditional retirement account where withdrawals are taxed as income.
The formula
Balance = Current balance compounded + Monthly contributions compoundedYour current balance grows via standard compound interest across the years until retirement. Monthly contributions are treated as a systematic investment stream and compounded using the standard future-value-of-an-annuity formula — the same math used for a SIP or 401(k) contribution stream.
A worked example
A 28-year-old with $10,000 saved, contributing $500/month at a 7% expected return, over 37 years to age 65: total contributions come to $232,000 ($10,000 + $500 × 12 × 37), but the projected balance grows to about $1,176,600 — meaning roughly $944,600, about 80% of the eventual balance, is tax-free investment growth rather than money actually put in.
Notes for the UK, US and India
Roth IRA contributions have income limits — high earners may be phased out of direct contributions and need a 'backdoor Roth' strategy instead. Unlike a 401(k), a Roth IRA has no employer match, but it offers more investment choice and, crucially, tax-free withdrawals in retirement rather than taxable ones.
Frequently asked questions
Is a Roth IRA better than a traditional IRA or 401(k)?+
It depends on whether you expect to be in a higher or lower tax bracket in retirement than you are now — Roth is generally more valuable if you expect higher future taxes (common for younger, lower-earning savers), traditional if you expect lower future taxes.
What are the Roth IRA income limits?+
The IRS phases out your ability to contribute directly above certain income thresholds, which are adjusted annually and differ by filing status — check current IRS limits, since exceeding them without using a 'backdoor Roth' conversion can trigger penalties.
Can I withdraw my contributions early without penalty?+
Yes — you can withdraw your original contributions (not the growth) from a Roth IRA at any time, tax- and penalty-free, since you already paid tax on that money. Withdrawing earnings early is what typically triggers taxes and a 10% penalty, with some exceptions.