Roth IRA Calculator
Project your tax-free retirement balance and the tax you save versus an ordinary account.
Your Roth IRA
Balance composition
The most tax-efficient retirement account
Decades of tax-free compounding is the Roth IRA's superpower. See what consistent contributions could grow into — and the tax it shelters.
Tax-free growth
Every dollar of growth in a Roth IRA is withdrawn tax-free in retirement. The calculator shows how large that tax-free portion becomes over decades of compounding.
2025 limits built in
Contributions are automatically capped at the 2025 limit — $7,000, or $8,000 with the age-50 catch-up — so your projection stays realistic.
Tax-saving estimate
See an estimate of the tax you avoid versus holding the same investments in an ordinary taxable account, illustrating the Roth advantage.
Retirement income
Translates your final balance into a monthly income using the 4% rule, turning an abstract number into real spending power.
Contribution vs growth
A clear breakdown shows how much of your balance is money you put in versus tax-free growth — a ratio that flips dramatically over time.
100% private
All calculations happen in your browser. Your age, balance, and contributions never leave your device.
Who uses this calculator
Young professionals
Lock in today's low tax rate and let decades of tax-free compounding work in your favor.
Roth vs traditional
Weigh the tax-free Roth against an upfront-deduction account before choosing where to save.
Maxing out
See what contributing the full $7,000 a year builds versus a smaller amount.
Retirement planning
Estimate tax-free retirement income alongside Social Security and a 401(k).
Frequently Asked Questions
What is a Roth IRA?
A Roth IRA is an individual retirement account funded with after-tax dollars. You get no tax deduction when you contribute, but the money grows completely tax-free and qualified withdrawals in retirement — including all the investment growth — are never taxed. It is the mirror image of a traditional IRA or 401(k), where you deduct contributions now but pay tax on withdrawals later.
What are the 2025 Roth IRA contribution limits?
For 2025 you can contribute up to $7,000, or $8,000 if you are age 50 or older (a $1,000 catch-up). This is a combined limit across all your IRAs (traditional and Roth together), and you can only contribute up to your earned income for the year. This calculator caps your contribution at the applicable limit automatically.
Are there income limits for a Roth IRA?
Yes. Roth IRA eligibility phases out at higher incomes. For 2025 the phase-out for single filers runs roughly $150,000–$165,000 of modified adjusted gross income, and about $236,000–$246,000 for married filing jointly. Above the top of the range you cannot contribute directly — though many high earners use a "backdoor Roth" conversion instead. This calculator does not check eligibility; confirm your MAGI against the IRS limits.
Roth IRA or traditional / 401(k) — which is better?
The core question is whether your tax rate is higher now or in retirement. If you expect to be in a higher bracket later (common for younger or lower-income savers), the Roth wins because you lock in today's lower rate and withdraw tax-free. If you are a high earner now expecting lower income in retirement, a traditional account's upfront deduction may win. Many people hold both to diversify their future tax exposure.
When can I withdraw from a Roth IRA tax-free?
Qualified, fully tax-free withdrawals require you to be at least 59½ and to have had the account open for at least five years. A valuable feature: you can withdraw your own contributions (not the growth) at any time, tax- and penalty-free, because you already paid tax on them. This makes the Roth more flexible than most retirement accounts, though tapping it early undercuts the compounding.
How is the tax saving estimated?
In an ordinary taxable account, your investment growth would eventually be taxed. In a Roth IRA, that same growth is withdrawn tax-free. The calculator estimates the saving as your total growth multiplied by your tax rate — a simplified figure that illustrates the Roth advantage. Actual savings depend on capital-gains versus income tax treatment and your specific situation.
Understanding the Roth IRA
The Roth IRA is one of the most powerful wealth-building accounts available to American savers, precisely because of one feature: tax-free growth. You contribute money you have already paid tax on, and in exchange the government never taxes the account again — not the growth, not the withdrawals, ever (provided you follow the rules). Over a multi-decade horizon, that tax-free compounding can be worth a small fortune.
Roth vs traditional: the core trade-off
Every retirement saver faces the same question — pay tax now or pay tax later? A traditional IRA or 401(k) gives you a deduction today and taxes withdrawals in retirement. A Roth does the opposite: no deduction now, but tax-free withdrawals later. The deciding factor is your tax rate now versus in retirement. Younger workers and anyone early in their earning curve usually expect to be in a higher bracket later, which makes locking in today's lower rate through a Roth especially valuable.
The 2025 limits and income phase-outs
For 2025 you can contribute up to $7,000 ($8,000 if 50 or older). But eligibility to contribute directly phases out at higher incomes — roughly $150k–$165k of MAGI for singles and $236k–$246k for married couples filing jointly. Earn above the ceiling and the direct contribution is off the table, though the "backdoor Roth" — contributing to a traditional IRA and converting it — remains a widely used workaround for high earners. Always confirm your eligibility against current IRS figures.
Flexibility most retirement accounts lack
Because you have already paid tax on your contributions, the IRS lets you withdraw your contributions (but not the earnings) at any age, tax- and penalty-free. This makes a Roth IRA double as a backstop emergency fund in a way a 401(k) cannot. That said, pulling money out early sacrifices the very compounding that makes the account so powerful, so it should be a last resort, not a plan.
No required minimum distributions
Unlike traditional IRAs and 401(k)s, a Roth IRA has no required minimum distributions during the original owner's lifetime. You are never forced to withdraw, so the balance can keep compounding tax-free for as long as you live — and can pass to heirs with favorable tax treatment. This makes the Roth a uniquely effective tool for both retirement income and estate planning.
Where the Roth fits in your plan
A common priority order for US savers is: contribute enough to your 401(k) to capture the full employer match, then max a Roth IRA, then return to maxing the 401(k). The Roth slots in after the free match because it offers tax diversification — having both pre-tax (401(k)) and post-tax (Roth) buckets gives you flexibility to manage your tax bracket in retirement. Even modest, consistent Roth contributions started early can grow into a meaningful tax-free nest egg.