Roth IRA Calculator
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About Roth IRAs
The Roth trade: pay taxes on the seed, never on the harvest. For young savers and anyone expecting equal-or-higher future tax rates, it's the standard recommendation — decades of compounding exiting entirely tax-free, no RMDs ever forcing withdrawals, and contribution flexibility no other retirement account matches.
Enter your ages, annual contribution, any existing balance, and an assumed return. The projection shows the tax-free total and its contributions/growth split — the growth line being the tax bill you'll never receive. Maxing the annual limit? Enter the current year's figure from irs.gov; it changes.
Workplace plan with a match comes first in priority order — model it with the 401k Calculator
The Tax-Free Math
Standard future value; the tax treatment is the feature:
FV = balance × (1+r)ⁿ + monthly × ((1+r)ⁿ − 1) ÷ r Qualified withdrawal tax: $0 on ALL of it (qualified = age 59½+ AND account open 5+ years)
Worked example: $7,000/year from 30 to 65 at 7% grows to about $1,050,000 — of which only $245,000 was contributed. The $806,000 of growth exits untaxed; the same growth in a traditional IRA would be taxed as ordinary income on withdrawal, and in a brokerage account taxed along the way.
Roth vs Traditional vs Taxable
The three homes for the same $7,000/year, honestly compared:
| Account | Tax going in | Tax on growth | Tax coming out | RMDs? |
|---|---|---|---|---|
| Roth IRA | None saved (after-tax) | None | None (qualified) | Never (owner) |
| Traditional IRA | Deductible (if eligible) | Deferred | Ordinary income | From 73 |
| Taxable brokerage | None saved | Dividends/gains taxed | Capital gains | Never |
The Roth-vs-traditional decision is a tax-rate bet: deduct now (traditional) wins if retirement rates are lower; tax-free later (Roth) wins if equal or higher. Splitting between both hedges the guess.
Rules Worth Knowing
Flexibility is the Roth's quiet feature: CONTRIBUTIONS (not growth) can come back out anytime, tax- and penalty-free — which is why it doubles as a deep emergency reserve. Growth withdrawn early generally owes tax plus 10% penalty, with exceptions (first home up to a capped amount, and others). The five-year clock on the account matters even past 59½ — open a Roth early if only with $100, to start it ticking.
Income phase-outs cap direct contributions for high earners — the numbers adjust yearly (irs.gov) — but the backdoor Roth (nondeductible traditional contribution + conversion) remains the standard workaround, complicated mainly by existing pre-tax IRA balances (the pro-rata rule). And unlike 401(k)s, IRAs are self-chosen: any broker, any funds, which usually means lower fees than an average workplace menu.
Frequently Asked Questions
How much will a Roth IRA be worth in 30 years?
$7,000/year at an assumed 7% compounds to roughly $710,000 over 30 years — about $500,000 of it growth that exits tax-free. The assumption drives everything; run 5% and 9% above to see your honest range.
What is the Roth IRA contribution limit?
The IRS sets it annually (with a catch-up bump from age 50) and phases it out above income thresholds — both figures change most years, which is why this calculator points you to irs.gov instead of embedding numbers that would go stale.
Roth or traditional IRA?
A bet on your future tax rate: Roth wins if it'll be equal or higher (typical for young/rising earners), traditional wins if lower (peak earners near retirement). Unsure? Split contributions — tax diversification beats a wrong guess either way.
Can I withdraw from a Roth IRA early?
Your CONTRIBUTIONS: anytime, tax- and penalty-free. Growth: generally taxed + 10% penalty before 59½, with exceptions (first-home purchase up to the capped amount, disability, and others). This ordering rule is what makes the Roth uniquely flexible among retirement accounts.
Do Roth IRAs have required minimum distributions?
Not for the owner — ever. Traditional IRAs force taxable withdrawals from age 73; Roths can compound untouched for life and pass to heirs (who do face distribution rules). For estate-minded savers, that alone decides the Roth question.
What if I earn too much to contribute?
The backdoor route: contribute (nondeductibly) to a traditional IRA, then convert to Roth — legal and routine, with one trap: existing pre-tax IRA balances make conversions partly taxable via the pro-rata rule. Significant balances there usually mean a planner conversation first.
Sources & References
- [1]Roth IRAs — Internal Revenue Service (IRS)
Methodology. This calculator uses standard financial formulas used across the industry. It is reviewed and maintained by the Vast Calculators editorial team.
Last updated · July 11, 2026
Disclaimer. This tool provides estimates for general informational purposes only and is not a substitute for professional financial advice. Always consult a qualified financial advisor before making decisions about your finances.