Roth IRA Calculator
See how your tax-free retirement savings can grow
* This calculation assumes a constant annual return and contributions made at the end of each year. It does not account for taxes, inflation, or changing contribution limits. Not financial advice.
What Is a Roth IRA?
A Roth IRA is a special retirement account that lets you invest after-tax dollars today, and in return, your money grows completely tax‑free. When you withdraw in retirement (after age 59½ and having held the account for at least five years), you pay zero taxes on any earnings.
Benefits of a Roth IRA
- ✅ Tax‑free growth and tax‑free withdrawals in retirement
- ✅ No required minimum distributions during your lifetime (unlike a Traditional IRA)
- ✅ Flexibility to withdraw your contributions (not earnings) anytime without penalty
- ✅ Ideal for young earners who expect to be in a higher tax bracket later
Current Contribution Limits (2024 & 2025)
For both 2024 and 2025, you can contribute up to $7,000 per year if you're under 50. If you're 50 or older, you can make an additional $1,000 catch‑up contribution, bringing the total to $8,000.
You must have earned income at least equal to your contribution for that year. Contribution limits apply to all IRAs combined (Traditional + Roth).
Income Limits for Roth IRA Contributions
Your ability to contribute to a Roth IRA directly depends on your modified adjusted gross income (MAGI). For 2025, the phase‑out ranges are:
- Single filers: $150,000 – $165,000
- Married filing jointly: $236,000 – $246,000
If your income exceeds the upper limit, you might still contribute using a “backdoor Roth” strategy (consult a tax professional).
How the Calculator Works
Our Roth IRA calculator uses the future value formula for compound interest with regular additions:
- Your current balance grows at your expected annual return for the number of years until retirement.
- Each year's contribution is added at year‑end and also compounds.
- It then separates total contributions (what you put in) from tax‑free earnings — showing how much of your nest egg will be pure profit.
By adjusting the rate of return and annual contributions, you can model different saving scenarios. The estimate is for illustration only; actual returns will vary.
Frequently Asked Questions
When can I withdraw from a Roth IRA without penalty?
You can withdraw contributions at any time tax‑ and penalty‑free. To withdraw earnings tax‑free, you must be at least 59½ and have had the Roth for at least five years.
Can I have both a Roth IRA and a 401(k)?
Yes. Many people contribute to both, especially if their employer matches 401(k) contributions. The annual IRA limit applies separately.
Is a Roth IRA better than a Traditional IRA?
It depends on your current tax rate vs. your expected tax rate in retirement. If you think taxes will rise (or your income will be higher), a Roth’s tax‑free withdrawals can be very attractive. A Roth also offers more flexibility because contributions can be accessed early.
Disclaimer: This tool is for educational purposes only. Please consult a qualified financial advisor for personalized retirement planning.
