Roth IRA Calculator
Project tax-free growth in a Roth IRA based on your after-tax contributions.
Your Details
Contributions vs. Growth
What makes up your final balance
- Contributed$117.0K
- Growth$235.2K
Final Balance by Rate of Return
Sensitivity to your assumed return
Balance Growth Over Time
Total balance year by year
Contributed vs. Growth by Year
How growth accelerates over time
How It Works
- Enter your starting balance and regular contribution.
- Enter your expected annual rate of return.
- Set your time horizon in years.
- Press Calculate to update your results and charts.
Formula Used
P = current balance, r = periodic rate, t = number of periods, PMT = contribution per period. Roth contributions are after-tax; qualified withdrawals are tax-free.
Good to Know
- • Starting earlier matters more than contributing more later.
- • Small rate differences compound into large gaps over decades.
- • Consistent contributions smooth out market swings.
Important Notes
- • Returns are assumed, not guaranteed.
- • Figures don't account for taxes or fees unless noted.
- • Past performance doesn't predict future results.
Why 'Tax-Free' Growth Is Valuable
Because Roth contributions are made with money that's already been taxed, every dollar of growth shown in the "Growth Earned" figure above is money that, under current rules, comes out tax-free in retirement — assuming the withdrawal is qualified. That can make a Roth particularly valuable for money with a long time horizon to compound, since more of the growth stays with you rather than being taxed later.
Income Limits and Contribution Rules
Roth IRAs come with annual contribution limits set by the IRS, and eligibility to contribute directly phases out above certain income levels. Rules and limits are updated periodically, so it's worth checking current IRS guidance rather than assuming past limits still apply.
Unpacking the Terminology
- After-tax contribution — money contributed after income tax has already been paid on it.
- Qualified withdrawal — a withdrawal that meets IRS rules (generally age 59½ and the account open 5+ years) and is entirely tax-free.
- Income phase-out — the income range above which direct Roth contributions are reduced or disallowed.
Example Breakdown: Tax-Free Growth Over 25 Years
Starting with $12,000 and contributing $350/month at a 7% assumed return for 25 years:
Total contributed: $12,000 + ($350 × 300) = $117,000
Tax-free growth ≈ $187,000
Because Roth contributions are after-tax, the entire $304,000 balance — including that $187,000 of growth — comes out tax-free at qualified withdrawal, assuming current rules. In a comparable Traditional account, that same growth would be taxed as ordinary income upon withdrawal.
Time Horizon Table
$12,000 start, $350/mo, 7% return:
| Years | Tax-Free Balance |
|---|---|
| 15 | $146,000 |
| 25 | $304,000 |
Watch For These Pitfalls With Roth IRAs
- Exceeding income limits without realizing it — direct contributions phase out above certain income levels.
- Withdrawing earnings early — can trigger taxes and penalties unless an exception applies.