The formula
How it works
Project how a Roth IRA grows from your current balance and yearly contributions. Because you contribute after-tax money, every dollar of growth is tax-free when you withdraw it in retirement — a powerful long-term advantage.
FAQ
How is a Roth different from a traditional IRA?
You pay tax on the money before it goes into a Roth, so contributions are not deductible — but qualified withdrawals in retirement, including all the growth, are completely tax-free. A traditional IRA works the opposite way, taxing withdrawals instead.
Who benefits most from a Roth?
People who expect to be in a similar or higher tax bracket in retirement, and younger savers with decades of tax-free growth ahead of them. The longer the money compounds, the more valuable the tax-free withdrawal becomes.
Is there a limit on how much I can contribute?
Yes, the IRS caps annual Roth IRA contributions — $7,000 for most people in 2024, with a higher catch-up limit once you turn 50. If your contribution input exceeds the real-world limit, the calculator will still project the growth, but you’d need to spread it across multiple years in practice.
Can everyone contribute to a Roth IRA?
No — eligibility phases out above certain income (MAGI) thresholds set by the IRS each year, and high earners may be locked out entirely. Those who exceed the limit sometimes use a “backdoor” Roth conversion instead.
Can I withdraw the money early without penalty?
You can withdraw your original contributions at any time tax- and penalty-free, since they were already taxed, but withdrawing earnings before age 59½ (and before the account is 5 years old) usually triggers taxes and a 10% penalty, with some exceptions.
Do I have to start withdrawing at a certain age?
No — unlike a traditional IRA or 401(k), Roth IRAs have no required minimum distributions during the original owner’s lifetime, so the balance can keep growing tax-free for as long as you like.
What if I can’t contribute the full amount every year?
The calculator assumes a steady annual contribution, but real-world contributions can vary or pause without penalty — just enter a lower average contribution to get a more realistic projection if your savings fluctuate year to year.
About the Roth IRA calculator
This calculator projects the future value of a Roth IRA from your current balance and yearly contributions. A Roth is funded with after-tax money, so unlike a traditional IRA there is no deduction now — but the trade-off is that all the growth, and every qualified withdrawal in retirement, is entirely tax-free. For long-term savers, that tax-free compounding can be extraordinarily valuable.
How to use it
Enter your current balance, your annual contribution, the return you expect, and the years until retirement. The calculator shows the projected balance — all of it tax-free at retirement — split into your contributions and the growth. For example, $10,000 plus $7,000 a year at 7% for 30 years grows to well over $700,000, and in a Roth you would owe no tax on any of it when you withdraw.
The formula
The balance uses the same growth formula as any invested account: , where is the current balance, is the annual contribution, is the annual return and is the number of years. The Roth advantage is not in the maths of the growth but in the tax treatment: because contributions were already taxed, the entire final balance is yours tax-free.
Where it is used
Savers use it to plan Roth contributions and to compare the after-tax outcome against a traditional IRA or a 401(k). It is especially popular with younger investors, who have the longest runway for tax-free growth, and with anyone who expects higher taxes later. Seeing the whole balance as tax-free money makes the long-term power of a Roth clear.