Roth IRA Calculator

A Roth IRA is a U.S. retirement account funded with after-tax dollars. Contributions don't reduce your taxable income today, but qualified withdrawals in retirement — including all investment growth — are tax-free. That makes it a powerful long-term compounding vehicle if you expect your tax rate to be the same or higher in retirement.

We compound the current balance at the expected annual return rate, then add the annual contribution at the end of each year. Mathematically: each year's balance = previous balance × (1 + r) + contribution. The figure shown is in today's dollars before taxes and inflation — Roth withdrawals are tax-free in retirement, but inflation will reduce the real purchasing power.

The S&P 500 has averaged roughly 10% annual nominal return historically, or about 6–7% after inflation. Lower stock allocations and bond-heavier mixes target lower returns. The default of 7% reflects a typical real return assumption. Your actual return will vary year to year and is not guaranteed.

Yes — the IRS sets annual Roth IRA contribution limits and they change periodically. There are also income-based phase-outs that can reduce or eliminate your eligibility. We don't enforce a limit in the input box because the figure depends on the current year and your filing status — verify the current limit and your eligibility on the IRS website before contributing.