Introduction
A Roth IRA lets your money grow tax-free. You pay taxes on your income now and put money into the account. Once you are 59½ and have met the 5-year rule explained below, you pay no taxes when you take it out, not even on the growth. 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 the dividend yield and tax rate for a taxable account. 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 $7,500 per year, or $8,600 if you are age 50 or older.1
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. From 1928 to 2025, the S&P 500 with dividends grew at a compound average of 10.02% a year, and 10-year US Treasury bonds at 4.53% a year.10 A mix of stocks and bonds falls between the two.
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.
Dividend Yield (%): Enter the yearly dividend yield of what you would hold in the taxable account. It is part of your annual return, not added to it, and it matters only for the taxable account, which pays tax on its dividends every year. The default is the S&P Composite index's yield in Robert Shiller's stock market data, its dividends over the past twelve months divided by its price.5 In June 2026 that was 1.10%.
Dividend & Gains Tax Rate: Enter your tax rate on qualified dividends and long-term capital gains, plus your state's rate. Qualified dividends are taxed at the lower capital gain rates.6 The taxable account pays this rate on its dividends each year, and on its growth above the cost basis when you sell at retirement. Dividends that were already taxed count toward the cost basis, so they are not taxed twice. Add 3.8% if the net investment income tax applies to you: it applies when your modified adjusted gross income is over $200,000 if you are single or head of household, $250,000 if you are married filing jointly or a qualifying surviving spouse, or $125,000 if you are married filing separately.7 The tax is 3.8% of whichever is less: your net investment income, or the amount by which your modified adjusted gross income is over that threshold.7 If you are only a little over it, add less than the full 3.8%.
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 can't deduct what you put into it, so the money goes in after you have already paid taxes on it.9 The big benefit is that your money grows tax-free. Once you are 59½ and the 5-year period that starts with the first tax year you made a Roth IRA contribution for has passed, you pay no taxes on what you take out, not even on the gains.8
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 tax on dividends in the year they are paid. You also pay tax on your capital gains when you sell.4 The calculator taxes the account's dividends each year, puts what is left back into the account, and at retirement takes off the capital gains tax you would owe on selling everything. Those taxes 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 total you put into all of your traditional and Roth IRAs can't be more than $7,500 per year, or your taxable compensation for the year if that is less.1 If you are age 50 or older, you can contribute up to $8,600 per year.1 This extra $1,100 is called a catch-up contribution.2 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).9
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 part of each year's dividends to taxes, and part of your gains when you sell. The yearly dividend tax 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.
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. If you file a joint return, you may be able to contribute even if you had no taxable compensation, as long as your spouse did.1 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.
When Can You Withdraw From a Roth IRA?
You can take out your regular contributions at any time with no tax or penalty.8 Money you converted from a traditional IRA is different: if you take it out within the 5-year period that starts with the tax year of the conversion and you are under 59½, you may owe a 10% additional tax.8 To withdraw your earnings tax-free and penalty-free, you generally need to be at least 59½ years old, and the 5-year period that starts with the first tax year you made a Roth IRA contribution for must have passed.8 If you withdraw earnings before both are true, you may owe income tax on them, plus a 10% additional tax if you are under 59½.8