Roth IRA Calculator
Project how your Roth IRA balance grows over time with regular contributions and tax-free compounding.
Why Roth IRA growth is tax-free
Roth IRA contributions are made with after-tax dollars — meaning you don't get a tax deduction upfront, unlike a traditional IRA or 401(k). In exchange, both the growth and qualified withdrawals in retirement are entirely tax-free, which can be a significant advantage over a multi-decade investment horizon.
This makes a Roth IRA particularly valuable if you expect to be in a similar or higher tax bracket in retirement, since you're locking in today's tax rate on contributions rather than paying tax on a potentially larger balance later.
Contribution limits to keep in mind
The IRS sets an annual contribution limit for IRAs that adjusts periodically and is also subject to income eligibility limits — high earners may be phased out of direct Roth IRA contributions entirely. This calculator doesn't enforce contribution limits, so check current-year IRS limits to make sure your planned monthly contribution stays within them.
Unlike a 401(k), an IRA is opened independently through a brokerage rather than through an employer, giving you more control over investment choices but without an employer match.
Frequently asked questions
What's the difference between a Roth IRA and a traditional IRA?
Traditional IRA contributions are often tax-deductible now but taxed on withdrawal in retirement. Roth IRA contributions are made with after-tax money now, but qualified withdrawals in retirement are completely tax-free.
Is there an income limit for contributing to a Roth IRA?
Yes — the IRS phases out direct Roth IRA contribution eligibility above certain income thresholds, which change periodically. Check current IRS limits if you're a higher earner.