Roth IRA Calculator
Project how your Roth IRA will grow — enter your current balance, monthly contribution, expected annual rate and years to see the projected balance, total contributions and investment growth.
What is a Roth IRA calculator?
A Roth IRA calculator projects how much a Roth IRA will be worth in the future. A Roth IRA is a US retirement account you fund with after-tax dollars; the money grows tax-deferred and comes out completely tax-free in retirement. This free calculator takes four inputs — your current balance, a monthly contribution, an annual return rate and the number of years — and compounds them monthly to show what the account could be worth.
It separates the balance into the money you put in (contributions) and the money the market earns (growth), so you can see just how much working years of compounding add. Because the whole calculation runs on JavaScript in your browser, results are instant and nothing is uploaded anywhere.
How to use
- Enter what your Roth IRA is worth today.
- Add your monthly contribution (about $583 if you max the $7,000 annual limit).
- Set the annual return rate you expect to earn.
- Enter how many years you plan to keep contributing.
- Click Calculate IRA to see the projected balance, total contributions and growth.
How the projected balance is calculated
Balance = P × (1 + r/12)^(12t) + M × [((1+r/12)^(12t) − 1) / (r/12)] P = current balance, M = monthly contribution, r = annual rate, t = years
The current balance compounds monthly, and each monthly contribution is added as an annuity, so the projected balance grows on top of money you already have plus every new dollar you invest.
Example
With the defaults — $10,000 current balance, $500 a month, 7% annual return and 30 years — click Calculate IRA. The projected balance is $691,150.47. Of that, your total contributions are $190,000 ($10,000 plus $180,000 of savings) and the investment growth is $501,150.47. Drop the rate to 5% or the years to 20 and watch the growth shrink dramatically — compounding is the whole story.
Common use cases
- Retirement planning: see whether your monthly contribution is on track to hit your target balance.
- Contribution tuning: compare $583 vs $667 a month to gauge the 50+ catch-up difference.
- Rate sensitivity: compare a conservative 5% with a growth-oriented 8% to gauge risk.
- Starting late vs early: see how much more money has to work when you start younger.
Pro tips
- Max the limit if you can: $7,000 a year (or $8,000 at 50+) is a generous tax-free bucket to fill first.
- Time beats timing: the biggest lever is years in the market, so start as early as possible.
- Use a realistic rate: 7% is a common long-run assumption; 10% is possible but risky.
- Roth vs traditional: Roth makes sense if you expect a higher tax rate in retirement than now.
FAQ
What is a Roth IRA?
A Roth IRA is a US retirement account where you contribute after-tax dollars, let the money grow tax-deferred, and withdraw it completely tax-free in retirement.
What is a Roth IRA calculator?
A tool that projects how much a Roth IRA will be worth in the future from your current balance, monthly contribution, annual return rate and number of years.
How is the projected balance calculated?
The current balance compounds monthly while monthly contributions are added as an annuity: Balance = P × (1+r/12)^(12t) + M × [((1+r/12)^(12t)-1)/(r/12)].
How much can I contribute to a Roth IRA?
For 2024 and 2025 the annual limit is $7,000, or $8,000 if you are 50 or older. That is roughly $583 or $667 per month.
When can I withdraw from a Roth IRA tax-free?
Contributions can be taken out anytime; qualified earnings are tax-free after age 59½ and at least five years have passed since your first contribution.
Is a Roth IRA better than a 401(k)?
They solve different problems. A Roth IRA offers tax-free growth and no required distributions, while a 401(k) usually comes with a match and can be offered as Roth or traditional.
Does a Roth IRA contribution reduce my taxes now?
No. Roth contributions are made with after-tax dollars, so they do not lower your current taxable income. The benefit is tax-free growth and withdrawals later.
What return rate should I assume?
Many investors use 7% a year, roughly the long-run average for a stock-heavy portfolio after inflation. A more conservative 5% gives a lower projection.
Can I have both a Roth IRA and a 401(k)?
Yes. You can contribute to both, but the total annual limit across all IRAs is $7,000 (or $8,000 for 50+), and your income may affect Roth eligibility.
Is this Roth IRA calculator free?
Yes. It runs entirely in your browser and no data is uploaded anywhere.
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