Roth IRA Calculator
See how your after-tax Roth IRA contributions compound tax-free over time. Includes contribution limits based on age and projected tax-free retirement income.
How the Roth IRA calculator works
This calculator compounds your current Roth IRA balance and annual contributions at your chosen rate of return. Contributions are capped at IRS limits: $7,000 per year, or $8,000 if you’re 50 or older.
Why Roth IRAs are powerful
You pay tax on contributions now, but all future growth and withdrawals are tax-free. This makes Roth IRAs especially valuable if you expect to be in a higher tax bracket in retirement, or if you want tax diversification alongside a traditional 401(k).
Roth IRA vs Traditional IRA
The key difference is timing of tax benefits. Traditional IRAs give you a tax deduction now but tax withdrawals later. Roth IRAs tax you now but withdrawals are free. If your current tax rate is lower than your expected future rate, Roth wins.
Sources
- IRS Publication 590-A — Contributions to Individual Retirement Arrangements
- 2026 Roth IRA contribution limit: $7,000 ($8,000 catch-up for 50+)
- Income phase-out ranges per IRS Rev. Proc. 2025-31