Roth IRA Calculator: Project Tax-Free Retirement Growth
Project how a Roth IRA could grow when funded with after-tax dollars, where qualified withdrawals in retirement come out completely tax-free.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year growth schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Future value | Total contributions | Total interest earned |
|---|---|---|---|
| $8k · $500/mo · 8% · 30yr | $832,665.56 | $188,000.00 | $644,665.56 |
| $0 · $583/mo · 7% · 35yr | $1,050,014.83 | $244,860.00 | $805,154.83 |
| $25k · $500/mo · 9% · 20yr | $484,172.22 | $145,000.00 | $339,172.22 |
| $50k · $250/mo · 6% · 15yr | $195,409.36 | $95,000.00 | $100,409.36 |
How This Calculator Works
Enter your current Roth IRA balance, the average annual return you expect, the years until retirement, and your monthly contribution. The calculator compounds the account monthly and adds each contribution. Because Roth contributions are already taxed, the projected balance is money you can later withdraw tax-free once the account qualifies.
The Formula
Future Value with Regular Contributions
P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
Starting with $8,000 and adding $500 a month at an 8% average return for 30 years produces a balance near $832,700. You contributed $188,000 of already-taxed income, so the remaining $644,700 of growth is never taxed provided the withdrawals are qualified.
Key Insight
The Roth advantage is the tax treatment of growth, not the growth itself. Every dollar of compounding shown here escapes tax in retirement, which makes a Roth most valuable when you expect your future tax rate to match or exceed today's.
2026 contribution limits and income phase-outs
Roth IRA contribution limits for 2026: $7,000 standard, $8,000 with $1,000 catch-up for age 50+. Same limits as Traditional IRA — they share a combined cap. Contributing $4,000 to Traditional means you can only add $3,000 to Roth, not another $7,000.
Income phase-outs (Modified Adjusted Gross Income / MAGI) for 2026 direct contributions: single filers, full contribution under $151,000, fully phased out at $166,000. Married filing jointly: full under $239,000, fully phased out at $249,000. Above the phase-out, you cannot make a direct Roth contribution.
Backdoor Roth IRA: high earners can still get money into Roth via 'backdoor' — contribute to Traditional IRA (non-deductible), then immediately convert to Roth. No income limit on conversions. Watch the pro-rata rule: existing pre-tax IRA balances make backdoor partially taxable. Combination strategy works best with NO prior Traditional IRA balance (or 'rolled over' into 401k to clear the slate).
The 5-year rule and qualified withdrawal mechanics
Roth IRA contributions can be withdrawn ANY TIME, tax-free and penalty-free — they were already taxed before contribution. The 5-year rule applies to EARNINGS withdrawals: account must be open at least 5 years AND owner age 59½+ for earnings to come out tax-free.
Multiple 5-year clocks: (1) original contributions: starts when you open your FIRST Roth IRA. (2) Roth conversions: each conversion has its own 5-year clock from the conversion date. (3) Roth 401(k) rolled to Roth IRA: complex rules — generally the Roth IRA's existing 5-year clock applies.
Withdrawal order (IRS automatic ordering rules): (1) regular contributions first (tax-free, penalty-free, anytime), (2) conversions next (taxable component already taxed at conversion, 10% penalty if withdrawn within 5 yrs of THAT conversion if you're under 59½), (3) earnings last (taxable + 10% penalty if not qualified). This order works in the saver's favor — you naturally take the cleanest dollars first.
Roth IRA vs Traditional: the marginal tax rate calculation
Decision rule: Roth wins if your retirement marginal tax rate is HIGHER than your current rate. Traditional wins if retirement rate is LOWER. Math: $7,000 in Roth (after $7,000 of after-tax income at, say, 22%) requires $9,000 of pre-tax income vs $7,000 of pre-tax for the Traditional. The Traditional 'matches' if at retirement you pay the same 22% on withdrawal.
For most workers: 20s/30s contributing to Roth, 40s/50s contributing more to Traditional (peak earning years, top bracket). Why: bracket creep over career means current 22% might become 32% in your 40s. Locking in lower-bracket money in Roth is wealth maximizing.
Mathematical edge cases where Roth ALWAYS wins regardless of bracket: (1) you'll inherit money or generate income outside retirement (puts you in high bracket regardless), (2) tax rates rise broadly over time (high probability given US deficit trajectory), (3) you want to avoid RMDs (Roth IRAs have no RMD during owner's lifetime — major estate planning advantage), (4) backdoor Roth is your only retirement-account option due to income limits.
Roth IRA 2026 contribution limits and phase-outs
Annual contribution limits and income phase-outs for direct Roth IRA contributions. Above the phase-out, use backdoor Roth strategy.
| Filing status | Full contribution under | Phase-out range | Cannot contribute above |
|---|---|---|---|
| Single | $151,000 | $151,000 - $166,000 | $166,000 |
| Married filing jointly | $239,000 | $239,000 - $249,000 | $249,000 |
| Married filing separately (lived together) | $0 (phase-out 0-10k) | $0 - $10,000 | $10,000 |
| Head of household | $151,000 | $151,000 - $166,000 | $166,000 |
Standard Roth IRA contribution: $7,000/yr 2026. Age 50+: $8,000/yr. Workplace 401(k) plans (Roth 401k) have separate, higher limits ($23,500 / $31,000 with catch-up) and NO income phase-out — making Roth 401(k) the preferred Roth path for higher earners.
Frequently Asked Questions
How is a Roth IRA taxed?
You contribute money that has already been taxed, so contributions and all investment growth can be withdrawn tax-free once the account is at least five years old and you are 59½ or older.
Is there a contribution limit?
Yes. The IRS sets an annual Roth IRA contribution limit, with a higher cap for savers age 50 and over. Keep your monthly contribution within one-twelfth of whichever limit applies to you.
Can high earners contribute to a Roth IRA?
Direct contributions phase out above an income threshold set by the IRS. Some savers above the limit use a backdoor Roth conversion instead; those rules are intricate, so professional advice helps.
Roth or traditional IRA — which is better?
A Roth wins if your tax rate in retirement is the same or higher than today. A traditional IRA can win if you expect a lower rate later, since it defers tax instead of prepaying it.
Can I withdraw my contributions early?
Your own contributions can be withdrawn at any time without tax or penalty because they were already taxed. Withdrawing the growth early, however, can trigger income tax and an additional penalty.
References & Authoritative Sources
- IRS Publication 590-A — Contributions to IRAs — Roth IRA contribution rules and limits · consulted May 31, 2026 · Tax authority — annual contribution limits, income phase-outs, eligibility rules
- IRS Publication 590-B — Distributions from IRAs — Qualified distribution rules and 5-year clock · consulted May 31, 2026 · Tax authority — 5-year rule, qualified withdrawal requirements, ordering rules
- Internal Revenue Code — Section 408A — Statutory basis for Roth IRAs · consulted May 31, 2026 · Primary statute — Roth IRA framework, contribution rules, conversion provisions
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The projection compounds the account monthly at a constant expected return and a fixed monthly contribution. It assumes contributions stay within annual IRS limits and that withdrawals are qualified; it excludes investment fees.
Updated