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Roth IRA Calculator

Project your tax-free Roth IRA retirement balance and see how much tax you save compared to a taxable brokerage account. Free investment calculator.

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United States Only

A Roth IRA is an Individual Retirement Account created strictly under USA Internal Revenue Service (IRS) tax laws. All calculations and annual contribution limits ($7,000 / $8,000 for age 50+) are hardcoded in USD ($).

$
$
Tax-Free Balance at Age 65
$0.00

Estimated Roth IRA portfolio. Every dollar of withdrawal is 100% tax-free.

Starting Balance
100.0%
Estimated Taxes Saved
$0.00

Compared to a taxable account paying a 22% tax rate on investment gains upon withdrawal.

Starting Balance:
$10,000.00
Your Total Contributions:
$0.00
Total Tax-Free Compound Growth:
+$0.00

Analytical Logic

The Ultimate Tax-Free Wealth Vehicle

A Roth Individual Retirement Account (Roth IRA) is arguably the most powerful wealth-building tool available to retail investors. By contributing after-tax dollars today, you permanently shield your investments from all future federal and state income taxes. Over a 30 to 40 year investing horizon, compound interest ensures that up to 80% of your final balance consists of investment gains-all of which can be withdrawn 100% tax-free.

Why Shielding Growth from Taxes Matters

In a standard taxable brokerage account, you must pay capital gains taxes (typically 15% to 20% plus state taxes) every time you realize a gain or rebalance your portfolio, plus annual taxes on dividends. In a Roth IRA, your compounding engine runs completely uninterrupted by tax drag.

Compound Interest with Zero Tax Drag

Tax-Free Balance = P × (1 + r)^n + PMT × [ (1 + r)^n - 1 ] ÷ r
Withdrawal Tax Liability = $0.00 (Assuming account is held for 5+ years and you are age 59½+)

FAQ

For tax year 2026, the maximum annual contribution to a Roth IRA is $7,000 if you are under age 50. If you are age 50 or older, you can contribute up to $8,000 thanks to the $1,000 catch-up allowance.
Yes. The IRS restricts direct Roth IRA contributions if your Modified Adjusted Gross Income (MAGI) is too high. For 2026, eligibility phases out for single filers earning between $150,000 and $165,000 ($236,000 to $246,000 for married couples filing jointly). If your income exceeds these limits, you may still be able to use the 'Backdoor Roth IRA' strategy.
One of the biggest advantages of a Roth IRA is that you can withdraw your original contributions (but not the earnings or investment growth) at any time, for any reason, completely tax-free and penalty-free. Withdrawing investment earnings before age 59½ generally triggers income taxes plus a 10% early withdrawal penalty unless you qualify for an exception (such as a first-time home purchase).
A Traditional IRA gives you an upfront tax deduction on contributions today, but you must pay ordinary income tax on every dollar you withdraw in retirement. A Roth IRA gives no upfront deduction today, but your investments grow completely tax-free and all withdrawals in retirement are 100% tax-free.
No. Unlike Traditional IRAs and 401(k) plans-which force you to start withdrawing minimum amounts at age 73-Roth IRAs do not have lifetime Required Minimum Distributions. You can leave your funds growing tax-free for your entire lifetime and pass the tax-free inheritance to your beneficiaries.

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Financial & Tax Disclaimer

The calculations, amortization schedules, and financial estimates provided by this tool are strictly for informational and educational purposes. They do not constitute formal investment, tax, legal, or accounting advice. Mortgage rates, loan terms, and tax brackets change frequently; always consult a certified financial planner (CFP), CPA, or licensed lending officer before making major financial commitments.

Editorial Standard: Rigorous formula verification & zero client-side tracking. Learn about our review process →
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