Roth IRA Calculator
See how tax-free growth in a Roth IRA can significantly boost your retirement savings.
2026 limit: $7,500 ($8,600 if age 50+)
$1,501,024
100% tax-free in 35 years
Total Contributions
$255,000
Tax-free Growth
$1,246,024
Pre-tax equivalent (22%)
$1,924,390
Pre-tax equivalent (24%)
$1,975,032
Formula
Projects Roth IRA growth using compound interest with annual contributions ($7,500 limit in 2026) and investment returns.
A = P(1 + r)^n + Annual Contribution × [((1 + r)^n - 1) / r]
Worked Example
Age 30, contribute $7,000/year, 7% annual return until age 67:
- Annual contribution: $7,000
- Time horizon: 37 years
- Total contributions: $259,000
- Projected balance at 67: $1.2 million
- Tax-free growth: $940,000
Common Questions
What's the difference between Roth and Traditional IRA?
Roth: Pay taxes now, withdraw tax-free in retirement. Traditional: Deduct contributions now, pay taxes on withdrawals. Choose Roth if you expect higher taxes in retirement.
Can I contribute if I'm over the income limit?
No, but you can "backdoor" convert: contribute to Traditional IRA, then convert to Roth. Consult a tax pro.
Can I withdraw early?
You can withdraw contributions anytime tax-free. Earnings have penalties before 59½ (exceptions include a first-time home purchase up to $10k and disability).
Key Takeaways
- Roth IRAs offer tax-free growth for 30+ years—some of the best wealth-building vehicles available.
- Max out your Roth ($7,500/year) before investing elsewhere if eligible; tax-free growth is invaluable.
- No required minimum distributions (RMDs) in retirement; you control when to withdraw.