About the Roth IRA Calculator
A Roth IRA is one of the most powerful retirement savings tools available to eligible individuals. Unlike a traditional IRA or 401(k), contributions are made with after-tax dollars — meaning you pay taxes now — but all qualified withdrawals in retirement are completely tax-free, including decades of investment growth. This calculator helps you visualize how your contributions and returns compound over time.
How the Projection Works
The calculator runs a year-by-year simulation from your current age to retirement:
- Each year, your annual contribution is added to the starting balance, and the combined total grows at your expected return rate.
- If you set an annual contribution increase, your contribution grows by that percentage each year — modeling the effect of increasing savings over time.
- Total contributions track the sum of all annual contributions plus your starting balance (capital invested), while investment growth shows how much the market added.
Formula
Year-End Balance = (Starting Balance + Annual Contribution) × (1 + Return Rate)
Next Year Contrib = Current Contribution × (1 + Contribution Increase Rate)
Total Contributions = Starting Balance + Sum of All Annual Contributions
Investment Growth = Final Balance − Total Contributions
When to Use This Calculator
- Retirement planning — See what consistent Roth IRA contributions could be worth at your target retirement age.
- Comparing contribution levels — Model the difference between contributing $3,500/year vs. the $7,500 maximum.
- Supplementing a 401(k) — Plan how Roth IRA contributions complement your employer plan, especially if you expect higher taxes in retirement.
- Seeing the impact of starting early — Adjust current age to see how much each additional year of compounding adds to your ending balance.
- Modeling contribution increases — Use the annual increase field to simulate raising contributions by 2%–5% each year as your income grows.
Investment returns are not guaranteed and will vary based on market conditions and your asset allocation. Roth IRA contribution eligibility depends on your income and filing status — consult IRS guidance or a tax professional. Contribution limits and income phase-out thresholds change periodically with tax law updates.
Frequently Asked Questions
How much will my Roth IRA be worth at retirement?
It depends on your starting balance, annual contributions, how much you increase contributions over time, your expected investment return, and years until retirement. Use this calculator to model different scenarios. Even modest contributions compounded over 20–30 years can grow substantially thanks to tax-free compounding.
Is a Roth IRA better than a 401(k)?
Both accounts have advantages. A Roth IRA uses after-tax contributions and grows tax-free, meaning qualified withdrawals in retirement are completely tax-free. A traditional 401(k) gives you a tax deduction now but withdrawals are taxed as income. Many financial planners suggest using both — contribute enough to your 401(k) to get the employer match, then fund a Roth IRA, then return to the 401(k) if you have more to save.
What annual return should I assume for a Roth IRA calculator?
The long-term average annual return of the US stock market has historically been around 7%–10% before inflation. A common planning assumption is 6%–7% after accounting for inflation and fees. If your Roth IRA holds bonds, money market funds, or more conservative assets, use a lower rate. This calculator does not guarantee any return — it models a fixed assumed rate.
Can I contribute to a Roth IRA and a 401(k) in the same year?
Yes. Roth IRA and 401(k) contribution limits are separate. You can max out both in the same year if you meet income eligibility requirements. In 2026, the Roth IRA limit is $7,500 ($8,600 if age 50 or older), and the 401(k) limit is $24,500 ($32,500 if age 50 or older).
What happens if I start contributing later?
Starting later dramatically reduces the compounding runway. For example, starting at 35 instead of 25 with the same contributions and return rate could result in less than half the final balance by age 65. This calculator lets you compare scenarios by adjusting current age and retirement age.
Does this calculator include Roth IRA income limits?
No. Eligibility to contribute directly to a Roth IRA phases out above certain income thresholds (for 2026: $153,000–$168,000 for single filers, $242,000–$252,000 for married filing jointly). This calculator models growth only — check IRS guidance or consult a tax advisor to confirm your eligibility.
How often should I increase my Roth IRA contributions?
Increasing contributions annually — even by a small percentage — can significantly boost your ending balance over time. A common strategy is to increase contributions whenever you get a raise, directing part of the raise toward retirement savings. Use the 'Annual contribution increase' field to model this strategy.
