Introduction
An IRA, or Individual Retirement Account, is a special account that helps you save money for retirement. There are different types of IRAs, and each one handles taxes in its own way. A Traditional IRA lets you put in money before taxes, but you pay taxes when you take it out later. A Roth IRA uses money you already paid taxes on, so withdrawals in retirement are tax-free. You can also save in a regular taxable account, which has no special tax breaks at all.
This IRA calculator compares all three options side by side. Enter your current savings, how much you plan to add each year, your expected rate of return, and your tax rates. The tool then shows you how much each account could be worth at retirement, after taxes. It also checks whether your income falls within the 2026 Roth IRA contribution limits and flags if your annual contribution exceeds IRS limits. Use the inflation toggle to see your results in today's dollars so you know what your future savings could actually buy.
How to Use Our IRA Calculator
Enter your financial details below to compare three account types side by side: a Traditional IRA, a Roth IRA, and a Regular Taxable Savings account. The calculator will show you which option could give you the most money after taxes at retirement.
Current IRA Balance: Enter the total amount of money you have saved in your IRA right now. If you are starting from zero, type 0.
Annual Before-Tax Contribution: Enter the gross dollar amount you plan to add to your account each year. This is the amount before any taxes are taken out.
Expected Annual Rate of Return: Enter the yearly percentage you expect your investments to grow. A common estimate for a balanced portfolio is 6%. If you need help understanding how returns compound over time, try our compound interest calculator.
Current Age: Enter how old you are today. This must be less than your retirement age.
Retirement Age: Enter the age when you plan to stop working and start using your savings. The calculator will project your balances up to this age. For a broader look at whether you are on track, see our retirement calculator.
Inflation Rate: Enter the rate at which you expect prices to rise each year. This is used to show what your future money would be worth in today's dollars. You can explore historical price changes with our inflation calculator.
Current Marginal Tax Rate: Enter the tax rate you pay right now on your income. This affects how much of your contribution actually goes into a Roth IRA or taxable account after taxes. Not sure of your bracket? Use our tax bracket calculator to find out.
Expected Tax Rate in Retirement: Enter the tax rate you expect to pay when you withdraw money in retirement. This rate is applied to your Traditional IRA balance when you take it out. Our effective tax rate calculator can help you estimate this figure.
Annual Income: Enter your yearly income before taxes. This is used to check whether you qualify to contribute to a Roth IRA based on IRS income limits. If you need to convert an hourly wage, our hourly to salary calculator can help.
Filing Status: Select how you file your federal tax return. This determines which Roth IRA income limits apply to you.
What Is an IRA?
An IRA, or Individual Retirement Account, is a special savings account that helps you save money for retirement. You put money in now, it grows over time, and you use it later when you stop working. The government gives you tax benefits for using an IRA, which means you get to keep more of your money.
Types of IRAs
There are three main ways to save for retirement that this calculator compares:
- Traditional IRA — You don't pay taxes on the money you put in today. Instead, you pay taxes when you take the money out in retirement. This also applies to SIMPLE IRAs and SEP IRAs, which work in a similar way for self-employed people and small business workers. Once you reach a certain age, you will need to take required minimum distributions (RMDs).
- Roth IRA — You pay taxes on the money now, before you put it in. But when you take it out in retirement, you owe zero taxes. All the growth is yours to keep. For a deeper look at Roth-specific projections, try our Roth IRA calculator.
- Regular Taxable Savings — A normal investment account with no special tax breaks. You pay taxes on your money before you invest it, and you also pay taxes on your earnings each year. Be aware that gains in these accounts may be subject to capital gains tax.
Which IRA Is Better for You?
The best choice depends on your tax rate now versus your tax rate in retirement. If you expect to be in a lower tax bracket when you retire, a Traditional IRA often wins because you skip taxes while your rate is high and pay them when your rate is low. If you expect your tax rate to stay the same or go up, a Roth IRA usually comes out ahead because you lock in today's lower rate and never pay taxes on your growth.
Keep in mind that an IRA is just one piece of your overall retirement plan. If your employer offers a workplace plan, our 401k calculator can help you project those savings as well. You may also want to consider tax-advantaged accounts like an HSA or a 529 plan for healthcare and education costs. To see all of your assets and liabilities in one place, use our net worth calculator.
IRA Contribution Limits
The IRS sets a maximum amount you can put into an IRA each year. For 2026, the limit is $7,500 per person. If you are age 50 or older, you get an extra $1,000 in catch-up contributions, bringing your total limit to $8,500.
Roth IRA Income Limits
Not everyone can contribute to a Roth IRA. If you earn too much money, the IRS reduces or eliminates your ability to contribute directly. For 2026, single filers start to lose eligibility at $153,000 in income, and married couples filing jointly start at $242,000. This calculator checks your income against these limits and warns you if you may be affected. Your eligibility is based on your Modified Adjusted Gross Income — our MAGI calculator can help you figure that out.
Why Start Early?
The longer your money stays invested, the more it grows thanks to compound interest. Compound interest means you earn returns not just on the money you put in, but also on the returns you already earned. Even small contributions can grow into a large sum over 20 or 30 years. Starting early is one of the most powerful things you can do for your retirement. A quick way to estimate how fast your money doubles is the Rule of 72. If you want to find the minimum you need to save now so your portfolio grows on its own by retirement, check out our Coast FIRE calculator. And to see what a future dollar amount is really worth today, use our future value calculator or investment calculator for additional projections.