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Roth IRA Calculator
Pay the tax now and never again — that is the Roth pitch. This Roth IRA calculator projects your tax-free balance at retirement, every dollar yours to keep, and settles Roth vs Traditional using your own current and retirement tax rates.
See how this works on the same $7,000-a-year saver — 3 real examples
Direct Roth contributions phase out at higher incomes (MAGI). This tool assumes you're eligible and doesn't model income limits — higher earners may be capped or use a backdoor Roth.
Roth IRA balance at retirement (tax-free)
$0
Roth (tax-free)
$0
Traditional (after tax)
$0
Taxable (after tax)
$0
Roth edge vs taxable
$0
Same total, sliced two ways — and on a Roth the second slice never comes.
- — Post-tax contributions (already taxed)
- — Tax-free growth
- — You keep — every dollar of it
- — Tax owed at withdrawal
Roth vs Traditional vs taxable balance over time
IRS limits & data source
Last reviewedYear-by-year balance scheduleAfter-tax Roth, Traditional and taxable value at each age
| Age | Post-tax contributed | Roth (tax-free) | Traditional (after tax) | Taxable (after tax) |
|---|
How your tax-free Roth balance is calculated
Every account starts from the same gross future value — your current balance plus each year’s contribution, compounded annually at your expected return:
grossFV = PV(1 + r)n + C · ((1 + r)n − 1) / r
Roth after-tax = grossFV × (1 − current rate)
Traditional after-tax = grossFV × (1 − retirement rate)
The Roth is post-tax in, tax-free out: you fund it with dollars you’ve already paid tax on, so only (1 − current rate) of the gross is really working for you — but nothing is ever taxed again, so the after-tax balance is the whole balance. A Traditional IRA invests the full gross pre-tax and is taxed once on withdrawal at your retirement rate. The equalize nuance: to compare fairly we run the same gross contribution through all three accounts, which is why Roth and Traditional land on the identical after-tax figure the moment your two tax rates are equal, and why the Roth pulls ahead only when your retirement rate is the higher one.
The taxable account is modeled honestly as an annual drag: like the Roth it takes post-tax contributions, but its growth is taxed each year, so it compounds at the reduced rate return × (1 − current rate) with no separate tax at the end (the basis is already post-tax). That’s an approximation of a real brokerage — it doesn’t model long-term capital-gains rates or deferring gains — chosen so the whole comparison is driven purely by the two rates you enter. We use only your entered tax rates; there are no tax brackets, tables or withholding math anywhere in this tool. These are projections at a constant return, not a forecast.
The whole choice is two tax rates
Identical saving — $7,000 a year for 35 years at 7% — under three tax futures. Only the pair of rates decides which account wins.
From a 22% bracket into a 24% one
tax-free at 65$962,967
- Paying 22% up front leaves the whole $962,967 spendable — no tax bill waits at the far end.
- A Traditional route grows to $1,234,573 but hands back 24% at withdrawal, keeping $938,275.
- The Roth’s win is $24,691, earned entirely by the two-point rate difference.
Every dollar of the gap comes from rate timing; the investments are identical.
Load this example (opens in a new tab)From a 32% bracket into a 22% one
tax-free at 65$839,509
- At a 32% rate today, tax claims more of each contribution before it ever starts compounding.
- The Roth ends at $839,509; deferring instead and paying 22% later ends at $962,967.
- Traditional wins this one by $123,457 — the mirror image of the first tab.
When today’s rate is the high one, paying it now is the expensive choice.
Load this example (opens in a new tab)A 24% bracket now and in retirement
either way, after tax$938,275
- Roth and Traditional land on $938,275 to the dollar — a mathematical tie, not a coincidence.
- Tax at 24% going in or 24% coming out multiplies the same growth either way.
- The taxable account still trails at $630,175, which is the case for using some IRA at all.
With equal rates the dollars tie; the decision falls to flexibility, not arithmetic.
Load this example (opens in a new tab)Illustrations only, not financial advice. Your own rate, taxes and insurance will differ — check with a qualified financial advisor before acting on any of this.
Getting the most from a Roth IRA, in plain English
- The balance is what you keep. A Roth’s tax-free withdrawals mean the projected number is spendable as-is — a Traditional IRA of the same size still owes tax when you draw it down.
- Roth wins when taxes rise. If your retirement rate is at or above today’s, locking in today’s lower rate pays off; when the two rates match, Roth and Traditional tie on dollars but Roth wins on flexibility.
- Tax-free beats taxable every time. Against an ordinary brokerage account, the Roth avoids the yearly tax drag on growth — the gap widens the longer you leave it invested.
- No lifetime RMDs. Unlike a Traditional IRA, a Roth has no required minimum distributions while you’re alive, so it can keep compounding tax-free as long as you like.
- Mind the limits and MAGI. Annual contributions are capped and phase out at higher incomes; the figures here are editable, informational estimates, not tax advice.
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Frequently asked questions
How does a Roth IRA grow tax-free?
You contribute money you have already paid income tax on, so nothing is deducted up front — but from then on the account grows completely tax-free, and qualified withdrawals in retirement are never taxed again. That is the Roth trade: post-tax dollars in, tax-free dollars out. On a $7,000 annual contribution at 7% over 35 years, the account grows to about $970,000 and you owe $0 in tax on any of it when you withdraw.
Roth vs Traditional IRA — which should I choose?
It comes down to one comparison: your tax rate today versus your expected tax rate in retirement. A Roth wins whenever your retirement rate is the same or higher than your current rate, because you lock in today’s lower rate; a Traditional IRA wins if you expect a lower rate later. This calculator’s two tax-rate sliders show the crossover live — and because both accounts grow the same gross contribution, when the two rates are equal the after-tax results are identical to the penny.
How much will my Roth IRA be worth?
Enter your current balance, annual contribution, expected return and the years until retirement, and the calculator compounds them year by year. Because a Roth is tax-free, the balance you see is also the amount you actually get to spend — there is no withdrawal tax to subtract later, unlike a Traditional IRA. The headline number, chart and schedule all update instantly as you move the sliders.
What is the annual Roth IRA contribution limit?
For 2026 the IRA contribution limit is $7,500, or $8,600 if you are 50 or older thanks to the $1,100 catch-up. That cap is shared across all your IRAs (Roth and Traditional combined). We show the limit as an editable, informational note rather than a hard cap on the input, so you can model catch-up contributions or future limit increases — always confirm the current figure with the IRS.
Who is eligible to contribute to a Roth IRA?
You need earned income, and your ability to contribute directly phases out at higher modified adjusted gross income (MAGI). Above the top of that range you cannot contribute to a Roth directly, though many higher earners use a “backdoor” Roth conversion instead. This calculator does not model income eligibility — it assumes you are able to contribute — so check your MAGI against the current IRS limits.
What is the Roth IRA 5-year rule?
To withdraw earnings tax-free, your Roth must have been open for at least five tax years and you must be 59½ or older (a few exceptions apply, such as a first home or disability). Your own contributions can always come out tax- and penalty-free, but the five-year clock governs the growth. This tool projects the balance and does not track your personal five-year clock.
When can I withdraw Roth IRA contributions penalty-free?
Because you already paid tax on them, the dollars you contributed can be withdrawn at any age, any time, with no tax and no penalty. The earnings are what the age-59½ and five-year rules protect. This flexibility, plus the fact that Roth IRAs have no required minimum distributions during your lifetime, is a real advantage the after-tax dollar figures alone don’t capture.
Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .