Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
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Use this result
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What does this calculator estimate?
A Roth IRA is a retirement account where you contribute after-tax dollars and then withdraw tax-free in retirement. This calculator compounds your current balance and annual contributions at an assumed return to estimate the future value. Enter your balance, annual contribution, years, and expected rate to see it.
- Roth contributions grow tax-free
- Qualified withdrawals in retirement are tax-free
- Contributions are made with after-tax dollars
What a Roth IRA does
A Roth IRA is an individual retirement account funded with after-tax dollars. The money grows tax-free, and qualified withdrawals in retirement are tax-free — the attraction is that you never pay tax on the growth.
Limitations to watch for
The result is only as good as your assumed return, which is not guaranteed. There are annual contribution limits and income limits that cap who can contribute. The estimate ignores fees and assumes a constant rate, so real outcomes differ. Withdrawals must be 'qualified' (typically after age 59½ and a 5-year holding period).
How to use it in practice
Use it to see the power of compounding and to compare a Roth against a traditional (tax-deferred) IRA. Because the growth is tax-free, a longer horizon is where a Roth shines. Check your eligibility and the IRS contribution limit before deciding how much to put in.
- Enter your current balance (or 0 if starting fresh).
- Enter your annual contribution and the number of years.
- Enter an expected annual return to compound the future value.
How this calculator works
Formula
Future value = current balance × (1 + rate)^years + annual contribution × [((1 + rate)^years − 1) ÷ rate]. It compounds your existing balance and each year's contribution at the assumed annual return.
Worked example
A $10,000 Roth IRA with $6,000 contributed at the start of each year, growing at 7% for 30 years: the tool compounds each year as (balance + contribution) × 1.07, giving about $682,561 (about $190,000 contributed, $492,561 of tax-free growth).
Assumptions to verify
- Contributions are made at the end of each year.
- A single constant annual return is assumed.
- The estimate excludes fees and income/contribution limits.
Frequently asked questions
What is a Roth IRA?
A retirement account funded with after-tax dollars. The money grows tax-free and qualified withdrawals are tax-free.
Who can contribute to a Roth IRA?
Anyone with earned income under the IRS income limit. Above a threshold, contributions phase out; high earners can't contribute directly.
What is the contribution limit?
It's set by the IRS annually. For 2025 it's $7,000, with a $1,000 catch-up for those 50+. Confirm the current year's limit.
How is a Roth different from a traditional IRA?
Traditional contributions are tax-deductible but withdrawals are taxed; Roth contributions are post-tax but withdrawals are tax-free. Roth wins if you expect higher taxes in retirement.
When can I withdraw tax-free?
Qualified distributions after age 59½ and 5 years from the first contribution. Contributions can be withdrawn anytime tax-free (but not earnings).
What return should I assume?
Historically broad-market stock returns have averaged 7–10% nominal, but past performance isn't guaranteed. Use a conservative rate.
Is the estimate guaranteed?
No. It's a projection based on your assumed return. Real results vary with market performance, fees, and contribution timing.
Cite this tool
BoringToolsKit. “Roth IRA Calculator.” boringtoolskit.com/roth-ira-calculator/ (reviewed 2026-08-25). Free to reference in articles, syllabi, and answer posts with a link.
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