Roth IRA Calculator
A Roth IRA lets you invest after-tax dollars today so that growth and qualified withdrawals in retirement are completely tax-free. Use the calculator above to project your balance by entering your current savings, a monthly contribution up to the annual limit, an expected return, and a time horizon. The 2026 IRS annual contribution limit is $7,000 ($8,000 if you are age 50 or older), per IRS Publication 590-A — so $583 per month gets you to the full limit. Results are estimates; actual growth depends on market performance and your individual tax situation.
How it's calculated
A Roth IRA calculator applies compound growth to your after-tax contributions. Because contributions are not deducted from income now, qualified withdrawals in retirement — principal and earnings — are tax-free under current law (IRS Publication 590-B). The calculator above projects your balance using the standard future-value formula applied monthly.
Two rules determine how much you can contribute. First, the annual limit: $7,000 in 2026, or $8,000 if you are 50 or older (IRS Publication 590-A). Second, an income phase-out: for 2024, single filers begin losing the ability to contribute at $146,000 of modified adjusted gross income and lose it entirely at $161,000; married filing jointly phase-out runs $230,000–$240,000. The IRS adjusts these figures annually. If your income exceeds the limit, a backdoor Roth conversion — contributing to a traditional IRA then converting — is a legal workaround described in IRS Notice 2010-84. The real, non-obvious advantage of a Roth is tax-rate arbitrage: if you are in a lower bracket now than you expect to be in retirement, paying taxes today locks in that lower rate on all future growth. To compare with a taxable account, see the investment growth calculator.
Roth IRA vs Traditional IRA — the key differences at a glance: A Roth IRA uses after-tax contributions so qualified withdrawals are 100% tax-free, has no required minimum distributions (RMDs) during your lifetime, and has income limits ($161,000 single / $240,000 married for 2024). A Traditional IRA gives you a tax deduction on contributions now (if you meet income rules), but every withdrawal in retirement is taxed as ordinary income — and you must take RMDs starting at age 73 whether you need the money or not. Both share the $7,000 annual limit. The verdict: choose Roth IRA when you expect a higher tax rate in retirement than you pay today, or when you value flexibility and zero RMDs. Choose Traditional IRA when you need the upfront deduction to lower this year's tax bill and expect a lower bracket in retirement. Many savers do both.
A worked example
Suppose you open a Roth IRA at age 35 with $10,000 already saved and contribute $583 per month (roughly $7,000 per year, the 2026 limit) for 30 years, earning an average of 7% annually. By age 65 the calculator projects a balance of approximately $730,000. Your total out-of-pocket contributions over that period are about $219,800. The remaining $510,000-plus is tax-free compounded growth — income you will never owe federal tax on in retirement, unlike a traditional IRA or 401(k), where every dollar withdrawn is taxable.
Common mistakes to avoid
- Contributing more than the annual limit. Excess contributions trigger a 6% excise tax per year until corrected, per IRS Publication 590-A.
- Ignoring the income phase-out. High earners who contribute directly may owe the excess-contribution penalty — check your MAGI before contributing.
- Assuming you can withdraw earnings at any time. Earnings are tax- and penalty-free only after age 59½ and a five-year holding period; early withdrawals of earnings may trigger taxes and a 10% penalty.
- Forgetting that the limit applies across all IRAs combined. Your $7,000 cap is shared between traditional and Roth IRAs — you cannot put $7,000 into each.
- Using a too-conservative return for a decades-long horizon. A Roth IRA held for 30+ years is typically invested in equities, so assuming a 4% savings-account rate understates likely growth.
Frequently asked questions
What is the Roth IRA contribution limit for 2026?
The 2026 Roth IRA contribution limit is $7,000, or $8,000 if you are age 50 or older — the same as 2024 and 2025 levels per IRS Publication 590-A. The IRS adjusts limits for inflation periodically, so check IRS.gov each year for the current figure.
What is the Roth IRA income limit?
For 2024, single filers start losing the ability to contribute at $146,000 of modified adjusted gross income and are fully phased out at $161,000. Married filing jointly phase-out runs $230,000–$240,000. The IRS updates these thresholds annually. If you exceed the limit, look into a backdoor Roth conversion.
What is a backdoor Roth IRA?
A backdoor Roth conversion lets high-income earners who exceed the income phase-out contribute to a non-deductible traditional IRA, then convert that balance to a Roth IRA. IRS Notice 2010-84 confirms this is permissible. If you have other pre-tax IRA balances, the pro-rata rule may create a taxable event — consult a tax advisor.
When can I withdraw from a Roth IRA tax-free?
Qualified distributions — meaning withdrawals of both contributions and earnings — are tax- and penalty-free once you are 59½ and have held the Roth for at least five years. You can always withdraw your original contributions (not earnings) at any age without tax or penalty, per IRS Publication 590-B.
Roth IRA vs. traditional IRA: which is better?
It depends on your current versus expected future tax rate. A Roth is advantageous if you are in a lower bracket now than you expect in retirement — you pay taxes today at the lower rate and never pay them again on growth. A traditional IRA gives an upfront deduction but all withdrawals are taxed. If your future tax rate is uncertain, contributing to both is a common hedge.
What are the biggest differences between a Roth IRA and a Traditional IRA?
Four differences matter most. (1) Tax timing: Roth contributions are after-tax — no deduction now, but withdrawals are forever tax-free. Traditional contributions may be tax-deductible now, but every withdrawal is taxed as ordinary income. (2) Required minimum distributions: Roth IRAs have no RMDs during the owner's lifetime; Traditional IRAs require withdrawals starting at age 73. (3) Income limits: Roth IRA has income limits ($161,000 single / $240,000 married in 2024); Traditional IRA has no income limit to contribute, though the deduction phases out for high earners with a workplace plan. (4) Withdrawal flexibility: Roth contributions (not earnings) can be withdrawn anytime without penalty — Traditional IRA withdrawals before 59½ trigger a 10% penalty. For a full comparison, see 401(k) vs Roth IRA.