Roth IRA Calculator

Roth IRA contributions are after-tax, so qualified withdrawals — including all growth — are tax-free in retirement.

How the Roth IRA Calculator works

This calculator compounds your after-tax Roth IRA contributions to your retirement date, and because the money went in after tax, the entire projected balance is yours to withdraw tax-free. That single fact is what separates a Roth from a 401(k) or a generic retirement projection: there is no tax line subtracted at the end, and there are no required minimum distributions forcing the balance back out.

The engine uses the future-value-with-contributions formula:

FV = P(1 + r/n)^nt + PMT × [((1 + r/n)^nt - 1) / (r/n)]

• P = your current Roth IRA balance (already after-tax dollars).
• PMT = each periodic contribution (the tool applies your monthly amount per period).
• r = expected annual return as a decimal (7% = 0.07).
• n = compounding periods per year (12 for monthly).
• t = years until you retire.

Step by step, the tool does this:

1. Converts your annual return to a per-period rate, r/n.
2. Grows your starting balance P over nt periods.
3. Grows every future contribution with the annuity term, so dollars added early compound longer than dollars added near retirement.
4. Adds the two parts into one tax-free balance - the number you actually get to spend, with nothing owed to the IRS on a qualified withdrawal.
5. Subtracts total dollars contributed (P + PMT × periods) to isolate tax-free growth - the slice a traditional IRA would tax on the way out but a Roth never does.

Edge cases it handles: a $0 starting balance (the P term drops out, common for a brand-new account), a 0% return (it falls back to plain addition instead of dividing by zero), and any compounding frequency from daily to annual. It does not apply the annual contribution limit, the 50+ catch-up, or the MAGI income phase-outs for you, so you must keep your inputs inside the IRS rules described below. It also assumes every dollar is a true Roth dollar - it does not model the pro-rata tax on a backdoor conversion.

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Example calculation

Here are three savers, each recomputed exactly. Every ending balance below is tax-free in retirement - there is no withdrawal tax to subtract, which is the whole point of a Roth.

Example A - young saver maxing out. Start with $0, contribute the 2026 limit of $7,000 a year ($583.33/month), earn 7%, for 35 years. The starting-balance term is zero, so all growth comes from contributions: $583.33 × [((1 + 0.07/12)⁴²⁰ - 1) / (0.07/12)] = $1,050,615. You contributed about $245,000, so roughly $805,615 is tax-free growth the IRS never touches. Starting young is the single biggest lever on this page.

Example B - mid-career, modest pace. Start with $20,000, add $500/month, earn 6%, for 25 years. Balance grows to $20,000(1 + 0.06/12)³⁰⁰ + $500 × annuity term = $435,796. Contributions total $170,000; tax-free growth is $265,796.

Example C - 50+ catch-up sprint. Start with $100,000, contribute the $8,000 catch-up limit ($666.67/month), earn 6%, for 15 years. Result: $439,289, of which $220,000 is contributions and $219,289 is tax-free growth. Notice the older saver starting with far more money barely out-earns the young saver in growth terms - in a Roth, time in the market matters more than the size of the head start.

Scenario	Start	Monthly	Return	Years	Contributed	Tax-free balance	Tax-free growth
A - young maxer	$0	$583.33	7%	35	$245,000	$1,050,615	$805,615
B - mid-career	$20,000	$500.00	6%	25	$170,000	$435,796	$265,796
C - 50+ catch-up	$100,000	$666.67	6%	15	$220,000	$439,289	$219,289

In a traditional IRA, Example C's $439,289 would still owe income tax on every dollar withdrawn - at a 22% bracket that is roughly $96,640 gone to taxes. In the Roth, you keep all $439,289. That gap is the after-tax-in, tax-free-out trade in dollars. To stress-test your own return assumption, run the same inputs through the investment calculator at a lower rate.

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Tips for using the Roth IRA Calculator

• Contribute early in the calendar year, not at the April deadline - a full extra year of tax-free compounding on the $7,000 limit adds up to tens of thousands over a career, and unlike a taxable account none of that growth is ever clawed back by the IRS.
• Remember the basis rule that is unique to Roths: your contributions (not earnings) can be pulled out anytime, tax-free and penalty-free, because you already paid tax on them. This makes a Roth a quiet backup reserve - though using it permanently sacrifices irreplaceable tax-free growth.
• If you are a high earner phased out of direct contributions by your MAGI, model the backdoor Roth: contribute to a nondeductible traditional IRA, then convert. Watch the pro-rata rule - existing pre-tax IRA money makes the conversion partly taxable, which this tool does not deduct.
• Do not model a 401(k) employer match here - Roth IRAs have no match. If your employer matches, fund the 401(k) up to the match first (that match is an instant return a Roth cannot offer), then route extra dollars to a Roth IRA; compare the two with the 401(k) calculator.
• Lean Roth when you expect a HIGHER tax bracket in retirement (early-career, large future pension, or you believe rates will rise); lean traditional when you expect a LOWER bracket later. Your current-versus-future bracket is the entire Roth decision.
• Roth IRAs have no Required Minimum Distributions during your lifetime, unlike traditional IRAs and pre-tax 401(k)s. That makes them ideal for leaving tax-free money to heirs - if that is your goal, push your years input out as far as you can.
• Start the 5-year clock now even with a tiny deposit. Earnings are only tax-free once your first Roth has been open 5 tax years AND you are 59 1/2; opening one early with even $50 starts the clock regardless of how much you add later.
• Use a realistic return, not the headline 10%. A 6-7% assumption is more honest after inflation; test a pessimistic 5% so your tax-free plan still holds up through a weak decade.
• Couples can each fund a Roth, and a non-working spouse can use a spousal Roth on the working spouse's earned income - effectively doubling household tax-free space to $14,000 ($16,000 if both are 50+).
• If a market crash drops a traditional-IRA balance, that is the best moment to convert it to Roth: you pay income tax on the lower value, and the entire rebound then grows back tax-free inside the Roth.

Roth IRA vs traditional IRA: pay tax now or later

A Roth IRA taxes your money going in and never again; a traditional IRA skips tax going in but taxes every dollar coming out. The right choice hinges on one comparison: your tax bracket today versus the bracket you expect in retirement.

If your bracket is identical at both ends, the two are mathematically equal. The Roth wins when your future bracket is higher; the traditional wins when it is lower. Using Example C's $439,289 balance, here is what actually survives withdrawal:

Account	Tax going in	Tax at withdrawal	Kept from $439,289
Roth IRA	Yes (after-tax)	$0	$439,289
Traditional, 12% bracket later	No (deducted)	12%	$386,575
Traditional, 22% bracket later	No (deducted)	22%	$342,646
Traditional, 24% bracket later	No (deducted)	24%	$333,860

Beyond the bracket math, the Roth also dodges Required Minimum Distributions and hands heirs tax-free money - two things a traditional IRA cannot do. Many savers hold both to hedge against unknown future tax law. To compare the traditional/401(k) side with an employer match, use the 401(k) calculator.

2026 contribution limits, catch-up, and MAGI phase-outs

For 2026 the IRS Roth IRA contribution limit is $7,000, or $8,000 if you are 50 or older thanks to the $1,000 catch-up. That is a combined cap across all your IRAs (Roth + traditional), not a per-account limit.

• Earned income required: you can only contribute up to your taxable compensation for the year. With no job income (or a working spouse's, via a spousal IRA), you cannot contribute at all - this is the one input rule no projection can override.
• MAGI phase-outs: your ability to contribute directly shrinks and then disappears as Modified Adjusted Gross Income rises. The exact thresholds differ for single, married-filing-jointly, and married-filing-separately filers and the IRS updates them each year - confirm your current-year numbers before maxing out, because crossing the line is what pushes high earners toward the backdoor Roth below.
• Excess contribution penalty: overshooting the limit, or contributing while over the income line, triggers a 6% excise tax each year until you remove the excess.

This tool does not enforce these limits, so keep your monthly input at or below $583.33 (the $7,000 cap) or $666.67 (the $8,000 catch-up) unless you are deliberately modeling conversions.

The backdoor Roth for high earners

If your income is above the Roth MAGI phase-out, the backdoor Roth lets you fund one anyway: put money in a nondeductible traditional IRA, then convert it to Roth. There is no income limit on conversions, and that loophole is what makes the strategy work for high earners locked out of direct contributions.

Two traps decide whether it stays clean:

1. The pro-rata rule. The IRS treats all your traditional IRAs as one pool. If you hold pre-tax IRA money, your conversion is taxed proportionally - you cannot simply convert the after-tax slice. Many people roll existing pre-tax IRAs into a 401(k) first to empty the pool before converting.
2. The 5-year conversion clock. Each conversion starts its own 5-year wait before that converted amount can be withdrawn penalty-free, separate from the earnings 5-year rule covered below.

Done correctly, the result is identical to a regular Roth contribution - the same $7,000 of after-tax dollars growing tax-free. Model it here by entering $583.33/month and treating the projected balance as fully tax-free.

The 5-year rule, withdrawals, and no RMDs

Your Roth contributions come out anytime tax-free and penalty-free, but earnings are only tax-free once you meet BOTH the 5-year rule and age 59 1/2. Roth withdrawals follow strict ordering rules - contributions first, then conversions, then earnings - so a casual early withdrawal usually touches only your already-taxed basis.

• 5-year rule: measured from January 1 of the year you first funded ANY Roth IRA. Open one early, even with $50, to start the clock running.
• Qualified withdrawal: tax-free AND penalty-free once you are 59 1/2 and past the 5-year mark. Specific exceptions (first home up to $10,000, disability, death) can waive the 10% penalty on earnings even before then.
• No lifetime RMDs: unlike a traditional IRA or pre-tax 401(k), you are never forced to withdraw, so the balance can keep compounding tax-free for decades or pass intact to heirs.

Because contributions are always accessible, some savers treat a Roth as a backstop reserve - but pulling money out permanently shrinks the tax-free growth this calculator projects, since you lose all future compounding on those dollars. For a dedicated cash buffer, use the emergency fund calculator instead.

Common mistakes that wreck a Roth plan

The most expensive Roth mistakes are not math errors - they are rule errors that quietly cost you taxes or penalties on an account that is supposed to be tax-free.

• Contributing while over the MAGI limit without realizing it, then owing the 6% excess penalty every year until you remove the excess.
• Leaving cash uninvested. Money parked in a Roth sweep account earns nothing - the Roth is a tax wrapper, not an investment. You must actually buy funds inside it for the tax-free growth to exist.
• Triggering the pro-rata rule on a backdoor Roth because of a forgotten pre-tax IRA, turning a clean tax-free move into a partly taxable one.
• Withdrawing earnings early and assuming all of it is penalty-free - only contributions are. The 10% penalty plus income tax hits the earnings portion.
• Using a fantasy return. Plugging in 10-12% inflates the projection; a 6-7% assumption is far more defensible.
• Skipping the spousal Roth, leaving a non-working spouse's $7,000 of tax-free space unused every year it lapses.
• Confusing the Roth IRA with a Roth 401(k) - the 401(k) version has much higher limits and an employer match. Model that workplace side in the retirement calculator.

Do the Roth math by hand or in Excel

You can reproduce this calculator with one spreadsheet function: =FV(). The full syntax is =FV(rate, nper, pmt, pv), and because Roth dollars are already taxed, the number it returns IS your spendable retirement money - no after-tax step to apply.

• rate = periodic rate = annual return / 12 (e.g. 0.07/12).
• nper = total periods = years × 12.
• pmt = your monthly contribution, entered negative (money leaving your pocket).
• pv = current balance, also negative.

For Example A ($0 start, $583.33/month, 7%, 35 years): =FV(0.07/12, 420, -583.333, 0) returns $1,050,615, matching the engine to the dollar. For Example B: =FV(0.06/12, 300, -500, -20000) returns $435,796.

By hand, compute the growth factor (1 + r/n)^nt once, multiply your starting balance by it, then multiply your monthly payment by (factor - 1) / (r/n) and add the two parts. Skip any tax adjustment - that is the Roth shortcut a traditional IRA does not get. For pure lump-sum math, the future value calculator isolates the P(1 + r/n)^nt piece on its own.

Roth IRA tax-free growth: quick-reference table

A Roth IRA's value is what you keep, because qualified withdrawals are 100% tax-free - no tax on the growth, ever. The table below shows what regular monthly contributions and one-time lump sums grow to at common return rates over typical horizons. Every figure is independently recomputed and represents tax-free dollars, with no withdrawal tax to subtract (unlike a traditional IRA). Your contributions are money you can pull out anytime; the rest is locked-in tax-free growth.

Contribution	Rate	Years	You contribute	Tax-free balance
$200/month	6%	40	$96,000.00	$398,298.15
$300/month	8%	35	$126,000.00	$688,164.75
$400/month	7%	25	$120,000.00	$324,028.68
$500/month	7%	30	$180,000.00	$609,985.50
$583.33/month (2026 max)	7%	30	$210,000.00	$711,645.68
$7,000 lump sum	7%	30	$7,000.00	$53,285.79
$10,000 lump sum	7%	40	$10,000.00	$149,744.58

Notice the lump-sum rows: a one-time $7,000 today is worth $53,285.79 tax-free in 30 years, which is why getting any amount in early - and never owing tax on the growth - beats waiting. Compare the underlying compounding with the compound interest calculator.

Is your Roth balance on track? Benchmarks

A useful yardstick: contributing the 2026 max of $583.33/month at a 7% return from age 25 to 60 reaches roughly $1.05 million, entirely tax-free. Use these reference points to sanity-check your own projection.

If you contribute $583.33/month at 7% starting at age...	Tax-free balance by 60
25 (35 years)	~$1,050,000
35 (25 years)	~$473,000
45 (15 years)	~$185,000

Common milestones: many savers aim to have roughly 1x their salary saved across all retirement accounts by 30, 3x by 40, and 6x by 50. A Roth is usually one slice of that total, so do not expect it to carry the whole target alone - especially given the annual contribution cap. If your number lags, the fix is almost always more years or a higher contribution, not a higher return assumption. To see your full picture across every account, run the retirement calculator, and to find your million-dollar date use the millionaire calculator. Pursuing early retirement on tax-free dollars? The FIRE calculator ties it together.

Related on this site

401(k) Calculator · Retirement Calculator · Investment Calculator · Compound Interest Calculator · Future Value Calculator · FIRE Calculator

For a related deep dive, see IRS Roth IRA rules.

Roth IRA Calculator — frequently asked questions

Roth vs traditional?

Roth is taxed now, tax-free later; traditional is deducted now, taxed later. Choose based on expected tax rates.

Income limits?

High earners may face contribution phase-outs; check current IRS thresholds.

Roth vs traditional IRA?

Roth: taxed now, tax-free later. Traditional: deducted now, taxed later.

Are there income limits?

Yes — high earners may face phase-outs; check current IRS thresholds.

How much does a $7,000 Roth IRA contribution grow to in 30 years at 7%?

A single $7,000 Roth IRA contribution grows to about <strong>$53,285.79</strong> in 30 years at 7%, and every dollar is tax-free when you withdraw it. The math is $7,000 &times; (1.07)³⁰. Because Roth money is contributed after-tax, that roughly $46,286 of growth is never taxed again - unlike a traditional IRA, which would tax the whole withdrawal. Model your own numbers with the <a href="/roth-ira-calculator/">Roth IRA Calculator</a>.

How much will $500 a month in a Roth IRA be worth in 30 years at 7%?

Investing $500 a month in a Roth IRA for 30 years at 7% grows to roughly <strong>$609,985.50</strong>, all tax-free. You contribute $180,000 of your own after-tax dollars, so about $429,986 is pure growth you never owe tax on. That tax-free-out feature is the Roth's defining edge over a traditional IRA, where that same growth would be taxed at withdrawal.

Is a Roth IRA better than a traditional IRA if I'm in the 22% tax bracket?

A Roth is the same or better whenever your retirement tax rate stays at or above today's rate. Example: $7,000 after-tax in a Roth at a 22% bracket equals an $8,974.36 pre-tax traditional contribution. At 7% for 30 years, the Roth ends at <strong>$53,285.79</strong> tax-free; the traditional grows to $68,315.12 but a 22% withdrawal tax leaves $53,285.79 - identical. If your bracket drops to 12% in retirement, the traditional wins instead.

How much does $300 a month grow to in a Roth IRA over 35 years at 8%?

Saving $300 a month in a Roth IRA for 35 years at 8% grows to about <strong>$688,164.75</strong>, withdrawn 100% tax-free in retirement. You put in $126,000, so roughly $562,165 is tax-free compound growth. Starting young and letting time work is the Roth's superpower, because there is no annual tax drag eating into the balance along the way.

What is the 2026 Roth IRA contribution limit and the 50+ catch-up?

The 2026 Roth IRA limit is <strong>$7,000</strong> if you are under 50, and $8,000 if you are 50 or older thanks to the $1,000 catch-up. That extra $1,000 a year ($83.33/month) invested at 7% for 15 years adds about $26,412.47 of tax-free money. The limit applies across all your IRAs combined, and contributions must come from earned income. Always confirm the current figure with the IRS.

How much extra does the $1,000 50+ catch-up add over 15 years?

The 50+ catch-up of $1,000 a year ($83.33/month) adds about <strong>$26,412.47</strong> to your Roth IRA over 15 years at 7%. You contribute an extra $15,000, so roughly $11,412 of that is tax-free growth on top. Maxing the full $8,000 limit at 50+ instead of $7,000 meaningfully boosts your tax-free balance right during your peak earning years.

What is a backdoor Roth IRA and who needs it?

A backdoor Roth lets high earners above the MAGI limits fund a Roth indirectly: you make a nondeductible $7,000 traditional IRA contribution, then convert it to a Roth. There is no income cap on conversions, so the strategy is legal and common. Watch the pro-rata rule if you hold other pre-tax IRA money, since it makes part of the conversion taxable. That $7,000 at 7% for 30 years still grows to about <strong>$53,285.79</strong> tax-free.

What is the Roth IRA 5-year rule in plain English?

The 5-year rule means you must have held a Roth for at least five tax years AND be 59 1/2 before earnings come out tax- and penalty-free. Your <strong>contributions</strong> are always withdrawable anytime, tax- and penalty-free - only the earnings are restricted. Example: $500/month for 5 years at 7% grows to about $35,796.45, of which $30,000 (your own contributions) is freely accessible immediately.

Can I withdraw money from my Roth IRA before retirement without penalty?

Yes - you can withdraw your <strong>contributions</strong> (not earnings) from a Roth IRA anytime, tax-free and penalty-free, because you already paid tax on them. If you contributed $24,000 over the years, you can take that $24,000 back even at age 40. Earnings withdrawn early usually trigger income tax plus a 10% penalty unless you meet the 5-year rule and an exception. This flexibility lets a Roth double as a backup fund.

Does a Roth IRA have required minimum distributions (RMDs)?

No - a Roth IRA has <strong>no RMDs</strong> during the original owner's lifetime, unlike a traditional IRA or 401(k). You can let the entire balance keep compounding tax-free for decades and pass it to heirs untouched. For example, $10,000 left alone at 7% for 40 years grows to about $149,744.58, with zero forced withdrawals eating into it. This is a key Roth-versus-traditional advantage.

How is a Roth IRA different from a 401(k)?

A Roth IRA is funded with your own after-tax dollars and has no employer match, while a 401(k) often comes with a company match - effectively free money you should not skip. The Roth offers tax-free growth, no RMDs, and anytime contribution withdrawals; the 401(k) has much higher limits and possible matching. Many people do both: grab the <a href="/401k-calculator/">401(k)</a> match first, then max the Roth.

How do I calculate Roth IRA growth in Excel?

Use Excel's FV function: <strong>=FV(rate/12, years*12, -monthly, -starting)</strong>. For a $10,000 start plus $500/month at 7% for 30 years, enter =FV(0.07/12, 360, -500, -10000), which returns about <strong>$691,150.47</strong>. Use negative signs for money you pay in. Since qualified Roth withdrawals are tax-free, that figure is your real spendable balance - no tax adjustment needed, unlike a traditional IRA.

How much will $200 a month grow to in a Roth IRA over 40 years at 6%?

Contributing $200 a month to a Roth IRA for 40 years at 6% grows to about <strong>$398,298.15</strong>, completely tax-free. You invest only $96,000 of your own money, so roughly $302,298 is tax-free compounding - proof that a long runway beats a big balance. A 20-something starting small often ends up ahead of a 40-something starting large, with no tax owed on the difference.

Is maxing out a Roth IRA at $583 a month for 30 years worth it?

Yes - maxing the $7,000 limit (about $583.33/month) for 30 years at 7% grows to roughly <strong>$711,645.68</strong>, every dollar tax-free in retirement. You contribute about $210,000, so over $501,000 is tax-free growth. With no RMDs and tax-free money for heirs, a maxed Roth is one of the most efficient retirement vehicles for anyone expecting steady or rising future tax rates.

Do Roth IRA income limits depend on my state?

No - Roth IRA eligibility is based on your federal <strong>MAGI</strong> (modified adjusted gross income) and filing status, not your state. The IRS sets nationwide phase-out ranges where your allowed contribution shrinks, then hits zero above the top threshold; high earners can still use the backdoor Roth. State income tax affects your overall situation but never your federal Roth contribution limit. Always confirm the current-year MAGI thresholds with the IRS.

Guides & articles

• Roth IRA Tax-Free Growth vs a Taxable Account: What the Tax Break Is Really Worth
• How Much Will My Roth IRA Be Worth at Retirement?

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