How to use the Roth IRA Calculator
The Roth IRA calculator projects growth of contributions that can be withdrawn tax-free in retirement, if rules are met.
Open the Roth IRA Calculator →
What you need to enter
- Current balance ($)
- Annual contribution ($)
- Years
- Annual return (%)
- Tax rate in retirement (%)
The formula
Each year: balance = balance × (1 + return) + contribution (with part-year growth on the contribution).
Worked example
Using the default values in the calculator:
- Current balance ($): 10000
- Annual contribution ($): 7000
- Years: 25
- Annual return (%): 7
- Tax rate in retirement (%): 22
| Balance at retirement | $512,513.60 |
| Total contributions | $185,000.00 |
| Growth | $327,513.60 |
| Tax-free value (Roth) | $512,513.60 |
Tips for better results
- Check the annual contribution limit and income limits.
- Keep contributing during down markets.
Common mistakes to avoid
- Withdrawing earnings early and triggering penalties.
- Assuming rules never change.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.