Finance calculators

Roth Calculator

Updated Jul 15, 2026 By Jehan Wadia
Rate Formulas
Account & Contributions
Growth Assumptions
Pick a common bracket or type a custom rate.
Timeline

Roth IRA vs. Taxable Account
Metric Roth IRA Taxable Account
Balance at Retirement
Total Principal Contributed
Total Interest Earned
Total Taxes Paid $0
Projected Balance Growth
Step-by-Step Solution
Year-by-Year Schedule
Year-by-year projection of Roth IRA and taxable account balances. Balance at retirement equals the End balance of the final year.
Age Year Annual Contribution Principal (Start) Principal (End) Roth Balance (Start) Roth Balance (End) Taxable Balance (Start) Taxable Balance (End) Taxes Paid (Year)
Scroll horizontally to see all columns.

Introduction

A Roth IRA lets your money grow tax-free. You pay taxes on your income now, put money into the account, and never pay taxes on it again — not even when you take it out in retirement. Over time, this tax-free growth can add up to a lot of extra money compared to a regular taxable account thanks to the power of compound interest.

This Roth IRA calculator shows you how much your savings could grow by the time you retire. Enter your current balance, how much you plan to add each year, your expected rate of return, and your tax rate. The calculator then compares a Roth IRA to a taxable investment account side by side so you can see the difference. It uses the 2026 IRS contribution limits of $7,000 per year, or $8,000 if you are age 50 or older.

You will get a year-by-year schedule, a growth chart, and a step-by-step breakdown of the math. You can also turn on inflation adjustment to see what your future savings would be worth in today's dollars. Use this tool to plan ahead and see how a Roth IRA can help you keep more of your money in retirement.

How to Use Our Roth IRA Calculator

Enter a few details about your savings, age, and goals. The calculator will show how much your Roth IRA could grow by retirement and how it compares to a regular taxable account.

Current Roth IRA Balance: Type the total amount of money you have in your Roth IRA right now. If you do not have one yet, enter $0.

Maximize Contributions: Turn this on if you want to contribute the most the IRS allows each year. The calculator will use the correct limit for your age, including the extra catch-up amount once you turn 50.

Annual Contribution: If you did not turn on the maximize option, type the dollar amount you plan to add to your Roth IRA each year.

Expected Annual Rate of Return: Use the slider or type a percentage for how much you expect your investments to grow each year. A common estimate for a mixed stock and bond portfolio is 6% to 7%. You can also use the Rule of 72 calculator to estimate how long it will take your money to double at a given rate.

Marginal Tax Rate: Pick your federal tax bracket from the dropdown or type in a custom rate. This is used to figure out how much taxes would cost you in a regular taxable account.

Current Age: Enter your age today. The calculator starts your contributions from this year.

Retirement Age: Enter the age when you plan to stop working and stop adding money. The calculator will project your growth up to this age. If you are still deciding when to retire, our retirement calculator can help you explore different timelines.

Inflation Rate (Advanced): Click "Advanced Settings" to turn on inflation adjustment. This shows what your future money would be worth in today's dollars. The default rate is 3%.

What Is a Roth IRA?

A Roth IRA is a type of retirement savings account. You put money into it after you have already paid taxes on it. The big benefit is that your money grows tax-free. When you take it out in retirement, you pay no taxes on it at all — not even on the gains. If you are also considering a traditional IRA, our IRA calculator can help you compare your options.

How This Roth IRA Calculator Works

This calculator shows you how much money your Roth IRA could grow to by the time you retire. You enter your current balance, how much you plan to add each year, your expected rate of return, and your age. It then projects your balance year by year until retirement.

It also compares your Roth IRA to a regular taxable investment account. In a taxable account, you pay taxes on your investment gains every year, including taxes on capital gains and dividends. Over time, those taxes add up and eat into your returns. The calculator shows you exactly how much more money you could end up with by using a Roth IRA instead.

Roth IRA Contribution Limits for 2026

The IRS sets a cap on how much you can put into a Roth IRA each year. For 2026, the limit is $7,000 per year. If you are age 50 or older, you can contribute up to $8,000 per year. This extra $1,000 is called a catch-up contribution. The calculator can automatically apply these limits for you when you turn on the "Maximize Contributions" option. Note that your eligibility to contribute the full amount depends on your modified adjusted gross income (MAGI).

Why Tax-Free Growth Matters

When your investments earn money inside a Roth IRA, you keep all of it. In a taxable account, you lose a portion of your gains to taxes each year. This means less money stays invested, and less money compounds over time. The longer you invest, the bigger the gap between the two accounts becomes. Even a small tax drag each year can cost you tens of thousands of dollars over a few decades. To see how much your balance could grow to over a specific time frame, try the future value calculator.

Who Can Open a Roth IRA?

You need earned income to contribute to a Roth IRA. This means money from a job or self-employment. There are also income limits. If you earn too much, you may not be able to contribute the full amount or at all. In that case, you might consider a Roth conversion from a traditional IRA instead. For most people with a regular income, a Roth IRA is one of the best tools to save for retirement. If your employer offers a workplace plan, you may also want to explore a 401(k) alongside your Roth IRA to maximize your total retirement savings.

When Can You Withdraw From a Roth IRA?

You can take out the money you contributed at any time with no penalty. However, to withdraw your earnings tax-free and penalty-free, you generally need to be at least 59½ years old and have had the account open for at least five years. If you withdraw earnings before that, you may owe taxes and a 10% penalty. Once you reach retirement, our retirement withdrawal calculator can help you plan how much to take out each year, and the 4% rule calculator can help you estimate a sustainable spending rate.


Formulas used

Roth IRA Balance (Year n)
B_n^{\text{Roth}} = (B_{n-1}^{\text{Roth}} + C) \times (1 + r)
Taxable Account Balance (Year n)
B_n^{\text{Tax}} = (B_{n-1}^{\text{Tax}} + C) \times (1 + r(1 - t))
Annual Tax Paid on Taxable Growth
\text{Tax}_n = (B_{n-1}^{\text{Tax}} + C) \times r \times t
Roth IRA Advantage
\text{Advantage} = B_N^{\text{Roth}} - B_N^{\text{Tax}}
Inflation-Adjusted (Real) Value
\text{Real Value} = \frac{\text{Future Value}}{(1 + i)^N}

Frequently asked questions

What rate of return should I use for my Roth IRA?

A common choice is 6% to 7% per year. This reflects a typical mix of stocks and bonds over the long run. If you invest mostly in stocks, you might use 8% to 10%. If you are more conservative with bonds or CDs, try 3% to 5%. Keep in mind these are averages. Real returns will go up and down each year.

Does this calculator account for income limits on Roth IRA contributions?

No. This calculator does not check whether your income qualifies you for a Roth IRA. The IRS limits or blocks contributions for high earners. For 2026, single filers with a modified adjusted gross income above a certain threshold may have a reduced limit or not be able to contribute at all. Check the IRS guidelines or talk to a tax professional to see if you qualify.

What does the inflation adjustment do?

It shows what your future money would buy in today's dollars. A dollar in 30 years will not buy as much as a dollar today because prices go up over time. Turning on inflation adjustment helps you see the real purchasing power of your savings, not just the raw number.

Why is my Roth IRA balance higher than the taxable account?

In a Roth IRA, your money grows tax-free. In a taxable account, you pay taxes on your gains every year. Those yearly taxes take money out of your account, so less is left to grow. Over many years, this tax drag adds up and creates a big gap between the two balances.

Are contributions added at the start or end of the year?

This calculator adds your annual contribution at the start of each year. That means your contribution earns a full year of growth right away. In real life, many people contribute monthly throughout the year, so actual results may differ slightly.

What is the catch-up contribution?

Once you turn 50 years old, the IRS lets you put extra money into your Roth IRA each year. For 2026, the regular limit is $7,000, but people age 50 and older can contribute up to $8,000. The extra $1,000 is the catch-up contribution. The calculator applies this automatically when you use the maximize option.

Can I enter a contribution above the IRS limit?

Yes, the calculator lets you type in any amount. If your contribution exceeds the IRS limit, you will see a yellow warning message. The results will still calculate, but they are for illustration only. In real life, going over the limit can trigger IRS penalties.

What tax rate should I enter?

Enter your federal marginal tax rate. This is the tax bracket that applies to your last dollar of income. Common brackets are 12%, 22%, 24%, and 32%. If you also want to include state taxes, add your state rate to your federal rate and enter the combined number as a custom rate.

Does this calculator include fees or expense ratios?

No. The calculator does not subtract investment fees, fund expense ratios, or advisory costs. In real life, these fees lower your actual return. To get a more accurate picture, you can reduce your expected rate of return by your estimated fees. For example, if you expect 7% growth and pay 0.5% in fees, enter 6.5%.

How does the taxable account comparison work?

The calculator assumes both accounts start with the same balance and get the same contributions each year. Both earn the same rate of return. The difference is that the taxable account pays taxes on its investment growth every year at the tax rate you entered. The Roth IRA pays no taxes on growth. This shows you how much the annual tax cost adds up over time.

What if I already have money in a traditional IRA?

This calculator is built for Roth IRA projections only. If you have a traditional IRA and want to move money into a Roth, that is called a Roth conversion. Conversions involve paying taxes on the amount you convert. This tool does not calculate conversion taxes or compare traditional versus Roth IRA outcomes.

Can I use this calculator if I have not opened a Roth IRA yet?

Yes. Just set the Current Roth IRA Balance to $0. The calculator will project your growth based on the annual contributions you plan to make starting now.

Does the calculator show required minimum distributions?

No. Roth IRAs do not have required minimum distributions during the original owner's lifetime. This is one of the key advantages of a Roth IRA compared to a traditional IRA or 401(k). You can leave the money in the account as long as you want.

Is the year-by-year schedule the same as a real account statement?

No. The schedule is a projection based on a fixed annual return. Real investments go up and down each year. The schedule gives you a useful estimate, but your actual balances will vary depending on market performance, the timing of your contributions, and other factors.

What does the step-by-step section show?

It breaks down the math behind the results. It shows the formula used, walks through the first year as an example, and then gives you the final totals. This helps you understand exactly how the calculator arrived at each number.