Roth IRA Calculator
Project tax-free Roth IRA growth and compare it against a taxable account.
About Roth IRA Calculator
The Roth IRA's advantage comes from tax-free compounding: you pay tax now on contributions, but every dollar of growth is permanently tax-free. The winner between Roth and Traditional IRA depends entirely on whether your tax rate will be higher today or in retirement. If you expect to be in a higher bracket later, the Roth wins because you're locking in today's lower rate on contributions. The traditional IRA comparison normalises for the tax deduction by growing the equivalent pre-tax amount, then applying retirement taxes.
Formulas
Roth future value
Roth FV = Current balance × growth + Monthly contribution × growth factor
- PV
- Current Roth balance
- C
- Monthly contribution (after-tax)
- r
- Monthly return rate
- n
- Months to retirement
Traditional IRA after-tax comparison
Traditional after-tax = Pre-tax balance × (1 − retirement tax rate)
- t_ret
- Expected marginal rate in retirement
Worked example
With the default values below, Roth IRA Calculator returns Roth IRA Value at Retirement of $1,073,120. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Current Ageaccepts 18–70
- 30
- Retirement Ageaccepts 40–85
- 65
- Current Roth IRA Balanceminimum 0 $
- 15,000 $
- Annual Contributionaccepts 0–10,000 $
- 6,000 $
- Expected Annual Returnaccepts 0–20
- 7
- Current Marginal Tax Rate (%)accepts 0–50
- 22
- Expected Retirement Tax Rate (%)accepts 0–50
- 25
- Taxable Account: Capital Gains Rate (%)accepts 0–40
- 15
Results
- Roth IRA Value at Retirement
- $1,073,120
- Traditional IRA (After-Tax Value)
- $1,031,846
- Taxable Account Value
- $823,950
- Roth vs Traditional AdvantagePositive = Roth wins; negative = Traditional wins.
- $41,274
- Roth vs Taxable Advantage
- $249,170
- Total After-Tax Contributions
- $225,000
- Tax-Free Growth
- $848,120
- Years of Growth
- 35
Step by step
- 1Years of tax-free compounding= 35 years
- 2Roth IRA future value (all tax-free at withdrawal)= $1,073,120
- 3Traditional IRA after-tax value (taxed at withdrawal at 25%)= $1,031,846
- 4Taxable account value (gains taxed at 15% annually)= $823,950
- 5Roth advantage over traditional IRA (after tax)= $41,274Roth wins because your future tax rate is higher than today's rate.
Assumptions and limits
- The result is derived only from the 8 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation into account.
- Figures are rounded for display to whole numbers, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- 2024 contribution limits and tax rules are used. Limits are indexed to inflation annually. Consult a tax advisor for Roth conversion and eligibility questions.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
2024 contribution limits and tax rules are used. Limits are indexed to inflation annually. Consult a tax advisor for Roth conversion and eligibility questions.
Frequently Asked Questions
Should I choose Roth or Traditional IRA?
If you expect your tax rate to be higher in retirement than today, choose Roth. If you expect a lower rate in retirement, choose Traditional. Early-career savers are often in lower brackets now — a strong case for Roth. Compare the 'Roth vs Traditional Advantage' result to see which wins at your assumed rates.
What is the 2024 Roth IRA contribution limit?
For 2024: $7,000 per year if under age 50, $8,000 if you're 50 or older (the extra $1,000 is the catch-up contribution). There are income limits for direct Roth contributions — if you exceed the phase-out range, you may use a backdoor Roth strategy.
When can I withdraw Roth IRA earnings tax-free?
To withdraw earnings tax and penalty-free, the account must be at least 5 years old AND you must be 59½ or older (or meet another qualifying exception). Contributions (not earnings) can always be withdrawn tax and penalty-free.
What is the taxable account comparison?
A taxable brokerage account with the same contributions grows at the same gross return, but investment income (dividends, capital gains distributions) is taxed each year. The tax drag reduces the effective growth rate and compounds against you over decades. The Roth's tax-free growth typically makes it far more valuable over long horizons.