Roth IRA Calculator
Estimate how much your Roth IRA could grow by retirement. Enter your current balance, annual contributions, expected returns, and retirement age to see the power of tax-free compounding over time.
A Roth IRA is one of the most powerful retirement savings vehicles available. Unlike a traditional IRA, Roth IRA contributions are made with after-tax dollars, meaning your withdrawals in retirement are completely tax-free. This includes both your contributions and all investment gains, provided you meet the requirements (age 59.5 and account open at least 5 years).
For 2024, the maximum annual Roth IRA contribution is $7,000 ($8,000 if you are age 50 or older). Income limits apply: single filers with modified adjusted gross income above $161,000 and married filing jointly above $240,000 cannot contribute directly, though backdoor Roth conversions may be available.
The real power of a Roth IRA becomes clear over long time horizons. Someone who starts contributing $7,000 per year at age 25 with an 8% average return would accumulate approximately $1.87 million by age 65 -- all of which can be withdrawn tax-free. By contrast, the same amount in a traditional IRA would be subject to income taxes upon withdrawal, potentially reducing the effective value by 20-30% depending on your tax bracket.