Quick answer
A Roth IRA calculator projects tax-free retirement savings: you contribute after-tax money and withdraw it tax-free in retirement. $500 a month for 30 years at a 7% return grows to about $567,000, of which $180,000 is contributions and roughly $387,000 is growth you never pay tax on if withdrawals are qualified.
How the Roth IRA Calculator works, step by step
Enter your current age, retirement age, current balance, annual contribution, expected return and the tax rate used for the comparison. The calculator compounds annually, adding each year's contribution at year-end. Contributions are capped at the IRS limit — for tax year 2026, $7,500 if you are under 50 and $8,600 at 50 or older — and the tool applies that cap to any figure you enter above it.
Contributions are made from taxed income, so there is no deduction now. In exchange, qualified withdrawals after age 59½ are completely tax-free, including decades of growth. The 5-year rule must also be met: the account must have been open at least five tax years before earnings come out tax-free. Your own contributions, as opposed to earnings, can be withdrawn at any age with no tax and no penalty.
The comparison beside the projection is what the Roth is worth against a taxable account. The tool grows identical after-tax contributions at the same return, then taxes the growth once at your rate at the end. On the worked example, growth of about $386,765 taxed at 15% costs $58,015 — that is the advantage the Roth wrapper buys with the tax you paid up front.
Compare the Roth with a traditional IRA on one question: is your tax rate higher now or in retirement? Paying 12% now to avoid 22% later makes the Roth the clear winner. Paying 24% now to avoid 12% later favours the traditional account. Near-equal rates make the Roth's flexibility — contributions withdrawable any time, and no required minimum distributions for the owner — the tiebreaker.
Two constraints shape real Roth saving. You need earned income at least equal to your contribution, and direct contributions phase out at higher incomes: for 2026 the phase-out runs from $153,000 to $168,000 of modified AGI for single filers and $242,000 to $252,000 for married couples filing jointly. There is no income limit on converting traditional IRA money to a Roth, which is the basis of the backdoor Roth.
The formula
Projected value = Annual contribution × [((1 + r)^t − 1) / r] + Current balance × (1 + r)^t, with annual compounding. Tax-free growth = projected value − balance − total contributions.
Worked example — try it on the calculator above
Worked example: $500 a month for 30 years at 7%
Contributions total $500 × 360 = $180,000, or $6,000 a year. Compounded annually at 7%, they reach about $566,765. The growth of roughly $386,765 is tax-free on a qualified withdrawal. In a taxable account, that same growth taxed once at a 15% capital gains rate would cost about $58,015, leaving $508,750. Note the tool compounds annually: monthly compounding of the same $500 a month would give about $609,985, so the annual figure is the conservative one.
Frequently Asked Questions
What is the Roth IRA contribution limit for 2026?
For 2026 the limit is $7,500 if you are under 50, and $8,600 at 50 or older (the $7,500 plus a $1,100 catch-up), across all your IRAs combined. You also need earned income at least equal to your contribution, and direct Roth contributions phase out from $153,000 to $168,000 of modified AGI for single filers.
Can I withdraw my Roth IRA contributions early?
Yes. Your own contributions (not earnings) can be withdrawn at any age, at any time, with no tax and no penalty, because the tax was already paid. Earnings withdrawn before 59½ and before the account is five years old are taxed and usually hit with a 10% penalty, with exceptions such as up to $10,000 for a first home.
Is there an income limit for a Roth IRA?
Yes for direct contributions — for 2026 the phase-out is $153,000 to $168,000 of modified AGI for single filers and $242,000 to $252,000 for married couples filing jointly. There is no income limit on converting traditional IRA money to a Roth, which is the basis of the so-called backdoor Roth: contribute to a traditional IRA without a deduction, then convert.
Do Roth IRAs have required minimum distributions?
No — not for the original owner. Since 2024, Roth 401(k)s are also exempt. This is a real planning advantage: the account can keep compounding for life and pass to heirs, who generally must empty an inherited Roth within 10 years but owe no income tax on it.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.