Roth IRA Calculator
Project a Roth IRA balance at retirement and compare it with the same savings in a taxable account.
A Roth IRA is funded with money you have already paid tax on. Everything it earns is then tax free.
Decades of tax free compounding is a powerful thing. This calculator shows how powerful.
How it works
Contributions are spread across the year and returns compound monthly. The result is yours with no tax due in retirement.
The comparison account applies your tax rate to each year's gains. The gap is the value of the Roth.
The formula
Taxable comparison = same deposits at a return reduced by the tax rate.
Tips
- Contributions can be withdrawn at any time without penalty. Earnings have rules.
- Roth makes most sense if you expect your tax rate in retirement to be the same or higher.
Frequently asked questions
Who can contribute to a Roth IRA?
Anyone with earned income below the IRS income limits. The limits and contribution caps change yearly.
When can I withdraw earnings tax free?
After age 59 and a half, as long as the account has been open five years.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.