CalcWealth

Free Roth IRA Calculator — Tax-Free Growth Projection

Enter your age, annual contribution, and expected return to project your tax-free Roth IRA balance at retirement and compare it to a Traditional IRA.

This free Roth IRA calculator uses the annual compound interest future value formula to show how your after-tax contributions grow into a completely tax-free retirement balance — and quantifies exactly how much you save in taxes versus a Traditional IRA. No sign-up required.

What Is a Roth IRA?

A Roth IRA (Individual Retirement Account) is funded with money you have already paid taxes on. Once inside the account, your investments grow completely tax-free — and qualified withdrawals in retirement are never taxed, not even the growth.

The 2026 contribution limits are $7,000/year (under 50) and $8,000/year (age 50+). Unlike a Traditional IRA or 401(k), Roth IRAs have no required minimum distributions (RMDs) during your lifetime, giving you complete control over when and how much you withdraw.

For most savers under 40, a Roth IRA is the superior choice: decades of tax-free compounding far outweighs the upfront tax savings of a Traditional IRA. Pair this calculator with the 401(k) calculator to build a tax-diversified retirement plan, and the retirement calculator to see your combined projected income.

How to Use This Roth IRA Calculator

  1. 1

    Enter Your Current Age and Retirement Age

    Your age determines how many years your contributions compound tax-free. Starting at 25 vs 35 is the difference between $1.5M and $707K at retirement — a $789K gap from just 10 fewer years.

  2. 2

    Enter Your Annual Contribution

    The 2026 IRS limit is $7,000/year if under 50, or $8,000/year at 50+. You can enter any amount up to these limits. Even $3,000/year consistently invested at 7% from age 25 grows to $641,000 by age 65.

  3. 3

    Set Your Expected Annual Return

    For a Roth IRA invested in broad stock index funds, 7% (inflation-adjusted) is the standard projection. For a more aggressive growth portfolio, 9–10% is plausible. For a conservative bond-heavy allocation, use 4–5%.

  4. 4

    Enter Your Tax Rate for the Comparison

    The calculator shows your tax savings versus a Traditional IRA. Enter your current marginal federal tax rate — 22% is the most common for middle-income earners. The Roth wins when your retirement tax rate exceeds your current rate.

Roth IRA Growth Formula Explained

FV = Balance × (1 + r)t + PMT × [((1 + r)t − 1) / r]

Where r = annual return rate, t = years, PMT = annual contribution. Annual compounding is used to match typical IRA contribution schedules.

Example: $7,000/year at 7% for 30 years (starting balance $0): FV = $7,000 × [(1.0730 − 1) / 0.07] = $7,000 × 101.073 = $707,510 tax-free. A Traditional IRA at the same rate and taxed at 22% on withdrawal yields only $551,858 after tax — a Roth advantage of $155,652.

Real-World Roth IRA Growth Examples

Tax-free compounding over different time horizons.

Best Case: Age 25, $7,000/year at 7% for 40 Years

Contributing the $7,000 annual maximum starting at age 25 at 7% return for 40 years produces a Roth IRA balance of $1,497,452 — completely tax-free. Total contributions: $280,000. Tax-free growth: $1,217,452. If taxed at 22% on withdrawal like a Traditional IRA, the same balance would yield only $1,168,013 — making the Roth worth $329,439 more.

Mid-Start: Age 35, $7,000/year at 7% for 30 Years

Starting at age 35 with $7,000/year at 7% for 30 years produces $707,510 tax-free. Total contributions: $210,000. Tax-free growth: $497,510. This is still a strong outcome — but the 10-year delay from starting at 25 costs $789,942 in tax-free wealth, illustrating the extraordinary cost of waiting to open a Roth IRA.

Catch-Up: Age 45, $8,000/year (50+ Limit) at 7% for 20 Years

Using the age-50+ catch-up limit of $8,000/year at 7% for 20 years from age 45 builds a tax-free balance of $344,963. Total contributions: $160,000. Growth: $184,963 — all tax-free in retirement. Even a late start with the catch-up provision can meaningfully supplement other retirement income.

Frequently Asked Questions

What is a Roth IRA?
A Roth IRA is an individual retirement account funded with after-tax dollars — meaning your contributions grow completely tax-free and qualified withdrawals in retirement are never taxed. Unlike a Traditional IRA, there are no required minimum distributions (RMDs), making it the most flexible long-term retirement vehicle available to eligible individuals.
What is the 2026 Roth IRA contribution limit?
2026 Roth IRA limits: $7,000/year if under age 50; $8,000/year if age 50 or older (catch-up contribution of $1,000). Income phase-out begins at $150,000 MAGI (single) and $236,000 (married filing jointly). Above those thresholds, the contribution limit is gradually reduced to $0.
Roth IRA vs Traditional IRA — which is better?
Roth IRA is better if you expect to be in a higher tax bracket in retirement than today — you pay taxes now at a lower rate and withdraw tax-free later. Traditional IRA is better if you need the tax deduction now and expect lower income in retirement. Age 25–40 savers almost always benefit more from a Roth due to decades of tax-free compounding.
Can I contribute to both a Roth IRA and a 401(k)?
Yes — you can max both in the same year if you meet the income limits. Contributing $23,500 to a 401(k) plus $7,000 to a Roth IRA totals $30,500 invested annually for retirement. The 401(k) gives you a tax break now; the Roth IRA gives you tax-free income later. Together they provide tax diversification in retirement.
When should I not use a Roth IRA?
Avoid a Roth IRA if you are in the 32%+ tax bracket today and expect to be in a lower bracket in retirement — the upfront tax cost outweighs the future benefit. Also consider a Traditional IRA or 401(k) if you need to reduce your current taxable income. High earners above the income phase-out limit can use a backdoor Roth IRA conversion instead.
How much will a Roth IRA grow in 30 years?
$7,000/year contributed to a Roth IRA at 7% annual return for 30 years grows to $707,510 — completely tax-free. At 7% for 40 years (starting at 25), it reaches $1,497,452. The 10-year difference (starting at 25 vs 35) costs $789,942 in tax-free wealth — illustrating why starting a Roth IRA as early as possible is critical.

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