Roth IRA Calculator
What a Roth IRA grows to by retirement, and how much of it is tax-free growth.
Good to know. In a Roth IRA the tax is paid on the way in. Everything it grows into comes out tax-free.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
The current balance grows by the yearly return for every year until retirement. Each yearly contribution grows for the years left after it goes in.
The formula
balance at retirement = balance × (1 + r)ⁿ + contribution × ((1 + r)ⁿ − 1) ÷ r
Worked example
Putting 7,000 a year into a Roth IRA from 30 to 65 (35 years) at 7% grows to 967,658.15. You put in 245,000; the other 722,658 is growth you can take out tax-free.
Sources
- Internal Revenue Service, Roth IRAs Contributions are not deductible, and qualified distributions are tax-free.
- Brealey, Myers and Allen, Principles of Corporate Finance, chapter 2 The standard formulas for loan payments, compounding and present value, the same as a spreadsheet’s PMT and FV.
Sources checked October 3, 2026. 4 automated tests check its answers on every change.
About the roth IRA calculator
A Roth IRA is a US retirement account you pay into with money that has already been taxed. In return, the growth is never taxed: once you are 59½ and the account has been open five years, everything you take out, contributions and earnings alike, is tax-free.
This calculator grows your current balance and a contribution at the end of each year at a steady return until your retirement age. Real markets don’t return the same every year, so treat the result as a guide; 6–7% a year is a common long-run assumption for a stock-heavy portfolio before inflation.
The IRS sets a yearly contribution limit (with an extra catch-up amount from age 50), and the limit is reduced and then phased out at higher incomes. Check the current figures before you plan around them.
A Roth suits people who expect a higher tax rate in retirement than today, and early savers, because decades of growth come out untaxed. Contributions (not earnings) can also be withdrawn at any time without tax or penalty. For an employer plan, use the 401(k) calculator; to see whether the total will last, the retirement calculator.
Questions people ask
How much will my Roth IRA be worth at 65?
Putting in 7,000 a year from 30 at a 7% return comes to about 968,000 by 65. Starting at 40 instead, about 443,000.
Are Roth IRA withdrawals tax-free?
Qualified withdrawals are: after age 59½ and once the account is five years old. Your own contributions can be taken out at any time.
What return should I assume?
Many plans use 6–7% a year for a mostly-stock portfolio over decades, before inflation. Use a lower figure to be cautious.