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Roth IRA Growth Calculator

Calculate Roth IRA growth and tax savings.

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Results

Total Roth Value

Estimated account value before any penalties or rule checks.

Taxable Equivalent$396,481.58
Est. Tax Saved$132,160.53

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Assumptions

  • Calculated locally from the inputs shown in this report.

Sensitivity preview

Current Balance -10%: Total Roth Value $523,214.68

Current Balance Current: Total Roth Value $528,642.11

Current Balance +10%: Total Roth Value $534,069.54

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About this Roth IRA

A Roth IRA is a retirement account where you pay taxes on money going in, but all future growth and withdrawals are 100% tax-free. This makes it incredibly powerful for long-term compounding.

How to use this calculator

  1. Enter your Current Balance.
  2. Enter your Annual Contribution (The 2024 limit is $7,000 for those under 50).
  3. Input expected Annual Return and Years to Grow.
  4. Enter a Tax Rate to compare against a taxable account.

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

The calculator projects future value using compound interest. It then calculates the 'Tax Saved' by comparing the tax-free Roth total against a taxable account where gains would be taxed upon withdrawal.

Inputs explained

Annual Contribution

Amount you save per year. Max is $7,000 (2024) or $8,000 if age 50+.

Tax Rate in Retirement

Used for comparison only. This is the rate you would theoretically pay on gains if the money were in a non-Roth account.

Understanding your results

The Total Roth Value is exactly what you get to keep. The Est. Tax Saved represents the extra wealth generated simply by choosing the right account type.

Example scenarios

Young Investor

Start with $0. Max out ($7k/yr) for 40 years at 8%. Total: ~$1.9 Million. Tax saved: ~$400k+.

Key Features

  • Tax-Free Growth Simulation
  • Comparison vs Taxable
  • Contribution Limit Awareness

Things to Keep in Mind

Assumes tax rate stays constant for the comparison. Does not enforce income eligibility limits for contributions.

Tips & Best Practices

  • You can withdraw your *contributions* (but not earnings) from a Roth IRA at any time, penalty-free.
  • High earners may be ineligible to contribute directly to a Roth IRA and might need to use a 'Backdoor Roth'.
  • Since Roth withdrawals don't count as taxable income, they can help keep your Medicare premiums lower in retirement.

Glossary of Terms

After-Tax Dollars
Money you have already paid income tax on (your net paycheck).
Required Minimum Distribution (RMD)
Mandatory withdrawals for Traditional IRAs. Roth IRAs do NOT have RMDs during your lifetime.

Frequently Asked Questions

What is the 2024 contribution limit?
$7,000 for individuals under 50, and $8,000 for those 50 or older.
Is Roth better than Traditional?
Roth is generally better if you expect your tax rate to be higher in retirement or if you want flexibility. Traditional is better if you need the tax break today (high earner).
When can I withdraw earnings tax-free?
You must be at least 59½ years old AND the account must have been open for at least 5 years.