1
Investing & Retirement
Roth IRA Calculator — Tax-Free Retirement Balance & Growth
The power of tax-free compounding: see what your after-tax contributions grow into by retirement
A Roth IRA is defined by one feature that no other mainstream retirement account fully shares: you fund it with after-tax dollars — money you've already paid income tax on — and in exchange, qualified withdrawals in retirement come out 100% tax-free, growth included. You pay the tax bill once, upfront, and the IRS never touches that account again. This calculator tells you what that tax-free pile is likely to be worth at retirement and, just as usefully, how much of it is growth the government can no longer tax.
Roth IRA vs. a 401(k) — the trade-offs you're actually choosing between. A traditional 401(k) flips the Roth deal on its head: contributions go in pre-tax (lowering this year's taxable income), but every dollar you withdraw in retirement is taxed as ordinary income. A 401(k) also usually comes with an employer match — free money a Roth IRA simply doesn't offer, because an IRA is an individual account you open yourself, not a workplace plan. The honest answer for most people isn't "either/or": capture the full employer match in the 401(k) first (don't leave free money behind), then funnel additional savings into a Roth IRA for the tax-free withdrawals. If you want to project the match and pre-tax side of that picture, run the numbers on the 401(k) Calculator and compare the two finish lines. The rule of thumb: a Roth wins when you expect to be in the same or a higher tax bracket in retirement than you are today — common for younger savers and anyone early in their earning years.
The 2025 contribution cap is small but mighty. You can put in up to $7,000 for 2025, or $8,000 if you're 50 or older (the extra $1,000 is the catch-up). That's a fraction of the 401(k) deferral limit, which is exactly why people max it every year — the tax-free wrapper is the scarce part, not the dollar amount.
Watch the income limits. Unlike a 401(k), a Roth IRA can be off-limits if you earn too much. Above the IRS phase-out range for your filing status, your allowed contribution shrinks to a reduced amount or zero. Higher earners often use a "backdoor Roth" to get in anyway. And to keep the withdrawal tax-free, the account must be open 5 years and you must be 59½ — the "qualified distribution" test.
Worked example. You're 30, retiring at 65, starting with $10,000, contributing the $7,000 max every year, and assuming a 7% average return. Across 35 years you'd contribute $255,000 of your own after-tax money — and end near $1.07 million. The roughly $818,000 gap is tax-free growth you'd otherwise owe income tax on in a traditional account. That gap, untaxed, is the whole point of the Roth.
This tool provides informational estimates only, not investment or tax advice; your actual results depend on market returns, contribution limits, and IRS rules that change over time. Confirm current limits and your eligibility with the IRS or a qualified advisor.
📖 See also: 401(k) vs Roth IRA: Which Should You Fund First?
Calculator
Fill in the fields and click "Calculate" for instant results.
📰 Formula
• Each year: Balance = Balance × (1 + r) + annual contribution • r = expected annual return ÷ 100 (e.g. 7% → 0.07) • Years = retirement age − current age • Total contributions = current balance + (annual contribution × years) • Total growth = final balance − total contributions • 2025 cap: $7,000 ($8,000 if age 50 or older)
📰 Formula
• Each year: Balance = Balance × (1 + r) + annual contribution • r = expected annual return ÷ 100 (e.g. 7% → 0.07) • Years = retirement age − current age • Total contributions = current balance + (annual contribution × years) • Total growth = final balance − total contributions • 2025 cap: $7,000 ($8,000 if age 50 or older)
🧪 Worked examples
2
Example 2
3
Example 3
4
Example 4
⚠️ Common mistakes
- Treating the expected return as guaranteed — 7% is a long-run average, not a promise.
- Contributing more than the annual cap ($7,000, or $8,000 if 50+) for 2025.
- Forgetting Roth IRAs have income limits that can phase out or block high earners.
- Assuming withdrawals are always tax-free — you need the account open 5 years and to be 59½.
💡 Tips
- Roth dollars are after-tax going in, so qualified withdrawals — including all the growth — are tax-free.
- If you're 50 or older, use the $8,000 catch-up cap to pack in more before retirement.
- Run two or three return scenarios (e.g. 5%, 7%, 9%) to see the realistic range, not one rosy number.
Embed this calculator on your site
Copy the code below and paste it into the HTML of your site or blog.
<iframe src="https://www.calcnimbus.com/embed/roth-ira-calculator" width="100%" height="500" frameborder="0" style="border:1px solid #eee;border-radius:12px"></iframe>
❓ Frequently asked questions
Why is a Roth IRA balance worth more than the same balance in a traditional account?
Because the headline number is the number you actually keep. A $1 million Roth balance is $1 million of spendable, tax-free money. The same $1 million in a traditional 401(k) or IRA is pre-tax — withdraw it and you owe ordinary income tax, so your real spending power might be $750,000–$850,000 depending on your bracket. This calculator's final figure already represents after-tax dollars, which is why a Roth's projected balance is an apples-to-oranges win over a pre-tax account of the same size.
What is the Roth IRA contribution limit for 2025?
For 2025 the limit is $7,000, or $8,000 if you're 50 or older (the extra $1,000 is a catch-up contribution). These caps apply across all your IRAs combined, and your eligibility can be reduced by income limits.
Are Roth IRA withdrawals really tax-free?
Qualified withdrawals are tax-free — including all the growth — if the account has been open at least 5 years and you're 59½ or older. You can always withdraw your own contributions tax- and penalty-free, but pulling earnings early can trigger taxes and a 10% penalty.
Roth IRA or 401(k) — which should I fund first?
For most people the order is: contribute to your 401(k) up to the full employer match first (that match is an instant 50%–100% return you can't get anywhere else), then direct extra savings into a Roth IRA for the tax-free withdrawals. A Roth IRA has no employer match and a much smaller $7,000 cap, but it gives you tax diversification — a pot of money the IRS can't tax in retirement. If you want to model the match and pre-tax growth side, use the 401(k) Calculator and compare it against this Roth projection.
Who can't contribute to a Roth IRA?
Roth IRAs have income limits. High earners above the IRS phase-out range for their filing status can only contribute a reduced amount or nothing directly. Many use a 'backdoor Roth' to get around this — check current IRS thresholds for your situation.
Does a Roth IRA have required minimum distributions (RMDs)?
No — and this is a real edge over traditional IRAs and 401(k)s. Those accounts force you to start withdrawing (and paying tax) once you reach the RMD age, whether you need the money or not. A Roth IRA has no RMDs during the original owner's lifetime, so you can leave it untouched to keep compounding tax-free, and it becomes a powerful estate-planning tool to pass tax-free money to heirs. The projected balance here is a nominal figure, so remember inflation still erodes future buying power even though no tax does.
What is a backdoor Roth IRA?
It's a legal workaround for people whose income is above the Roth contribution limits. You contribute to a traditional IRA (which has no income cap on contributions), then convert that money to a Roth IRA. The conversion lets high earners get money into the tax-free Roth wrapper that they couldn't contribute to directly. The catch is the 'pro-rata rule,' which can make the conversion partly taxable if you hold other pre-tax IRA balances — worth checking with a tax pro before you do it.
What does this Roth IRA projection leave out?
Three things worth naming. First, the return you enter is an assumption, not a guarantee — markets swing, and a weak early stretch dents the result, so test a few rates rather than one rosy number. Second, it assumes you stay eligible and keep contributing every year; if income limits phase you out partway through, your real total will be lower. Third, it ignores inflation, so a million future dollars buys less than a million today. What it does not need to subtract, uniquely, is income tax on the back end — that's the Roth advantage baked into the result.
Can I contribute to a Roth IRA after retirement?
Yes, at any age — but only if you still have earned income, meaning wages or self-employment income. Pension payments, Social Security, and investment income don't count as earned income, so a fully retired person with no job typically can't add new contributions. You also still have to stay under the income phase-out limits. A working spouse can fund a 'spousal' Roth IRA for a non-earning partner, which is a common way couples keep contributing on one income.