Roth IRA Calculator
Project your Roth IRA balance at retirement from your current age, annual contribution, and expected annual growth rate, plus the tax-free growth advantage.
Calculator Inputs
Your current age in whole years.
The age you plan to retire. Must be greater than your current age.
The amount you plan to contribute each year, assumed to be added at year-end.
The average annual investment growth rate you expect.
- Total Tax-Free Balance at Retirement
- $829,421.27
- Tax-Free Growth Advantage
- $619,421.27
- Total Contributions
- $210,000.00
- Years to Retirement
- 35
About these results
CalcSpectrum calculators produce automated estimates using established formulas and the specific values you enter. Because real-world outcomes depend on input accuracy, mathematical assumptions, and rounding conventions, please verify critical figures with an appropriately qualified financial, tax, medical, legal, or other professional, as relevant.
Financial Notice: These figures are informational estimates for personal planning only. They do not constitute financial, investment, tax, or legal advice, nor do they represent a lending offer or credit approval. Provider and financial institution figures, rates, fees, and underwriting requirements may differ.
How It's Calculated
Formula
This calculator projects your Roth IRA balance at retirement from a series of equal annual contributions (an ordinary annuity, each contribution applied at year-end), compounding at your expected annual growth rate. Roth IRA contributions aren't tax-deductible, but because qualified withdrawals in retirement are tax-free, the entire projected balance — including every dollar of investment growth — is never taxed. This calculator reports that growth portion (projected balance minus total contributions) as the 'tax-free growth advantage': the dollar amount of investment gains that, unlike a comparable taxable account, you won't owe tax on. This is not a tax-rate-computed savings figure — no tax rate is an input here — it is simply the growth that Roth tax treatment shields from tax.
Worked Examples
Age 30 to 65, $6,000/year, 7% growth
- Years to retirement: 65 − 30 = 35
- Total tax-free balance: $6,000 × [((1.07)^35 − 1) / 0.07] ≈ $829,296
- Total contributions: $6,000 × 35 = $210,000
- Tax-free growth advantage: $829,296 − $210,000 ≈ $619,296
Zero expected growth: age 30 to 40, $2,000/year
- With 0% growth, the balance is simply the sum of contributions: $2,000 × 10 = $20,000
- Tax-free growth advantage: $0 (no growth was generated to shield from tax)
Frequently Asked Questions
Does this calculator check IRS contribution limits or income eligibility?
No. Annual Roth IRA contribution limits and the MAGI-based income phase-out that can reduce or eliminate eligibility are set by the IRS and change from year to year. This calculator projects growth from whatever contribution amount you enter — it does not verify that amount is within the current legal limit or that you're eligible to contribute it.
Does this account for an existing Roth IRA balance?
No — this calculator starts the projection from $0 and grows only your entered annual contributions. If you already have a Roth IRA balance, this projection understates your total future balance.
What is the 'tax-free growth advantage'?
It's the investment growth portion of your projected balance — total balance minus your total contributions. Because qualified Roth withdrawals are tax-free, this growth is money you keep in full, unlike growth in a taxable account. It is not a computed tax-dollar savings figure against a specific tax rate.
How is this different from the IRA Calculator?
The IRA Calculator compares a traditional IRA's immediate tax deduction against the tax you'll owe on distribution — a single-year, tax-bracket-driven comparison with no growth projection. This Roth IRA Calculator instead projects multi-year investment growth from your contributions, since Roth IRAs aren't deductible but grow and withdraw tax-free. They intentionally answer different questions.
Does this guarantee my withdrawals will actually be tax-free?
No. This calculator assumes standard Roth tax treatment applies, but it does not verify contribution eligibility, the five-year holding rule, or qualified-distribution requirements. It is a growth projection only, not tax or eligibility advice — consult a tax professional about your specific situation.