Roth IRA Calculator
Calculate your Roth IRA growth with tax-free compounding. See how contributions grow over time and compare to Traditional IRA savings.
Roth IRA Projection
Tax-Free Balance at Retirement
$1,161,675
Tax-Free Monthly Income
$3,872
Based on 4% rule
Personal Information
Your age and filing status
Contributions
Your annual Roth IRA deposits
Growth & Tax Assumptions
Expected returns and tax rates
Your retirement tax rate affects the Roth vs Traditional comparison. Higher expected retirement taxes favor Roth.
Tax-Free Growth Over Time
Watch your Roth IRA compound
Roth vs Traditional IRA Comparison
See how tax-free growth compares
Roth IRA (Tax-Free)
$1,161,675
All yours - no taxes owed
Traditional IRA (After Tax)
$906,106
After 22% taxes
Note: This comparison assumes you invest the same dollar amount. Traditional IRA gives you a tax deduction today, which could be invested for additional growth. Your actual benefit depends on current vs future tax rates.
Year-by-Year Projection
| Age | Contribution | Growth | Balance |
|---|---|---|---|
| 35 | $7,000 | +$3,873 | $62,702 |
| 40 | $7,000 | +$8,250 | $129,607 |
| 45 | $7,000 | +$14,389 | $223,445 |
| 50 | $7,000 | +$22,999 | $355,058 |
| 55 | $7,000 | +$35,075 | $539,651 |
| 60 | $7,000 | +$52,013 | $798,552 |
| 65 | $7,000 | +$75,768 | $1,161,675 |
Impact of Contribution Amount
$2,000/year
$446,299
$361,299 growth
$4,000/year
$732,449
$577,449 growth
$6,000/year
$1,018,600
$793,600 growth
$7,000/year
$1,161,675
$901,675 growth
Roth IRA Key Benefits
Tax-Free Withdrawals
All growth is tax-free in retirement
No RMDs
No required minimum distributions
Contribution Access
Withdraw contributions anytime tax-free
Estate Planning
Pass tax-free to beneficiaries
Tax-Free Wealth Milestones
0.0% complete
$0
of $1,000,000
$100K
$100,000
$250K
$250,000
$500K
$500,000
$1M+
$1,000,000
$100,000 to $100K
$100,000
Next milestone
$100K
$100,000
$250K
$250,000
$500K
$500,000
$1M+
$1,000,000
What if I contributed more?
See how increasing contributions affects your tax-free retirement
Personalized Insights
4 insights based on your inputs
Maxing Out Contributions
You're contributing the maximum! Consider also maxing out a 401(k) with employer match.
Time Advantage
With 35 years of tax-free compounding, your $245,000 in contributions will grow to $1,161,675.
Roth Advantage
At a 22% retirement tax rate, Roth gives you $255,568 more in after-tax retirement money.
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Quick Answer
A Roth IRA offers tax-free growth and tax-free withdrawals in retirement. Contribute with after-tax dollars, and your investments grow tax-free. The 2025 contribution limit is 7,000 (8,000 if 50+). Income limits apply: phaseout starts at 150,000 (single) or 236,000 (married). Calculate growth at practicalwebtools.com.
Key Facts
- 2025 Roth IRA limit: 7,000 (8,000 if 50+)
- Income limits: phaseout at 150K single, 236K married filing jointly
- Tax-free growth and tax-free qualified withdrawals
- No Required Minimum Distributions (unlike traditional IRA)
- Contributions can be withdrawn anytime tax and penalty-free
- 5-year rule for earnings withdrawal qualification
- Backdoor Roth available for high earners
Frequently Asked Questions
A Roth IRA is an individual retirement account funded with after-tax dollars. Your contributions have already been taxed, so qualified withdrawals in retirement (including all earnings) are completely tax-free. This makes Roth IRAs ideal for those expecting higher taxes in retirement.
For 2024, you can contribute up to $7,000 to a Roth IRA if you're under 50, or $8,000 if you're 50 or older (catch-up contribution). These limits are across all your IRAs combined (Traditional + Roth).
For 2024, your ability to contribute phases out at $146,000-$161,000 MAGI for single filers, and $230,000-$240,000 for married filing jointly. Above these limits, consider a backdoor Roth IRA conversion.
You can withdraw your contributions anytime tax-free and penalty-free (you already paid taxes). Earnings can be withdrawn tax-free after age 59½ if the account has been open 5+ years. Early withdrawal of earnings may incur 10% penalty plus taxes.
Choose Roth if: you're young, expect higher future taxes, want tax-free growth, or value withdrawal flexibility. Choose Traditional if: you need current tax deductions, expect lower retirement taxes, or exceed Roth income limits.
There are actually two 5-year rules: (1) Your first contribution must be 5 years old before earnings can be withdrawn tax-free, and (2) Converted funds must wait 5 years before penalty-free withdrawal. Your contribution clock starts January 1 of the contribution year.
Roth IRA Projection
Tax-Free Balance at Retirement
$1,161,675
Tax-Free Monthly Income
$3,872
Based on 4% rule