Roth IRA Calculator
Project your Roth IRA balance at retirement based on current age, retirement age, existing balance, annual contributions, expected return, and inflation rate. See tax-free growth potential, inflation-adjusted balance, and estimated monthly income using the 4% rule.
Formulas, assumptions, and rounding are documented in our calculator methodology.
Projected Roth IRA Balance at Age 65
$1.07M
after 35 years · $381,832in today's dollars
Projection Summary
- Projected Balance (nominal)
- $1,074,424
- Real Balance (today's dollars, 3% inflation)
- $381,832
- Monthly Income (4% rule)
- $3,581/mo
- Monthly Income (inflation-adjusted)
- $1,273/mo
- Annual Withdrawal (4% rule)
- $42,977
Contribution Breakdown
- Starting Balance
- $10,000
- Total Contributions
- $255,000
- Investment Growth
- $819,424
- Final Balance
- $1,074,424
Contributions vs. Tax-Free Growth
Financial Disclaimer: Projections assume a constant annual return and end-of-year contributions. Qualified Roth IRA withdrawals are tax-free in retirement, but this calculator does not model tax impacts, required minimum distributions (Roth IRAs have no RMDs), or sequence-of-returns risk. Roth IRA contribution limits, income phase-outs, and tax rules change annually. This is for educational estimation only — not investment, tax, or legal advice. Consult a licensed financial advisor for personalized planning.
How Roth IRA Growth Is Calculated
This calculator uses two standard formulas. First, the future value of your current balance: FV = Balance × (1 + r)^n, where r is the annual return rate and n is years to retirement. Second, the future value of annual contributions (end-of-year annuity): FV = Contribution × [(1 + r)^n − 1] / r. Your total projected balance is the sum of both. The inflation-adjusted (real) balance divides the nominal balance by (1 + inflation)^n to express it in today's purchasing power.
Roth IRA vs. 401(k): Key Differences
Both accounts grow tax-deferred, but they differ on when taxes are paid and who can contribute. 401(k): contributions are pre-tax (lowers your current taxable income), withdrawals taxed as ordinary income in retirement, employer match available, higher contribution limits ($23,500 for 2026). Roth IRA: after-tax contributions, tax-free withdrawals in retirement, no employer match, lower limit ($7,000), no RMDs. Many financial advisors recommend contributing enough to a 401(k) to capture the full employer match, then funding a Roth IRA before adding more to the 401(k).
Maximizing Tax-Free Growth Over Time
The earlier you start contributing to a Roth IRA, the more powerful compound growth becomes. A 25-year-old contributing $7,000/year at 7% return will have approximately $1.8M by age 65 — nearly 90% of that is tax-free investment growth, not contributions. Key strategies: contribute every year you are eligible; invest in diversified equity funds for long-term growth; avoid early withdrawal of earnings; consider converting traditional IRA assets during lower-income years (Roth conversion). Always verify contribution and income limits at irs.gov before contributing.
Frequently Asked Questions
- A Roth IRA is a retirement account funded with after-tax dollars. Qualified withdrawals in retirement are completely tax-free, including all the investment growth. A Traditional IRA uses pre-tax contributions (often tax-deductible), and withdrawals in retirement are taxed as ordinary income. Roth IRAs also have no required minimum distributions (RMDs) during the owner's lifetime, giving you more flexibility on when to withdraw.
- For 2026, the Roth IRA contribution limit is $7,000 per year ($8,000 if you are age 50 or older). These limits apply to all IRA contributions combined (traditional + Roth). Contribution limits adjust periodically with inflation. Additionally, your ability to contribute may be reduced or eliminated if your income exceeds certain IRS phase-out thresholds — check irs.gov for current eligibility rules.
- Roth IRA withdrawals are tax-free and penalty-free if two conditions are met: (1) you are at least 59½ years old, and (2) the account has been open for at least 5 years. Contributions (not earnings) can always be withdrawn at any time without tax or penalty. Early withdrawal of earnings may be subject to income tax and a 10% penalty, with some exceptions (first home purchase, disability, etc.).
- The 4% rule is a retirement planning guideline suggesting you can withdraw 4% of your portfolio balance in your first year of retirement and adjust for inflation each year after, with a high probability the money lasts 30 years. For a $1,000,000 Roth IRA, that's $40,000/year or about $3,333/month. Because Roth withdrawals are tax-free, the full amount is spendable income — unlike taxable accounts where withdrawals create a tax bill.
- No — this calculator projects growth only. It does not check whether you are eligible to contribute based on income. High earners may be subject to phase-out rules that reduce or eliminate the ability to contribute directly to a Roth IRA. If you exceed the income limit, a 'backdoor Roth IRA' conversion strategy may be available. Consult a tax professional or financial advisor for eligibility guidance.