Roth IRA Growth Calculator
Enter how much you contribute to a Roth IRA each year, the average annual return you expect, and how long you will invest. The calculator treats your contributions as an end-of-year annuity and projects the tax-free future value, how much of that is your own money versus investment growth, and — for context — how a comparable taxable brokerage account might fall short after capital-gains tax. Qualified Roth withdrawals in retirement are tax-free, which is the whole point of the account.
Contributions & growth
Capital-gains rate is used only for the taxable-account comparison — qualified Roth withdrawals are tax-free.
Tax-free future value
$661,225.50
after 30 yrs at 7.00% — withdrawn tax-free
Total contributed
$210,000.00
Investment growth
$451,225.50
Breakdown & taxable comparison
Balance over time
Compare scenarios
Run the same calculation with two or three input sets side by side. Differences are highlighted; every number comes from the same tested formula as the calculator above.
| Input | Scenario A | Scenario B |
|---|---|---|
| Annual Contribution | ||
| Annual Return Pct | ||
| Years | ||
| Capital Gains Tax Pct |
How it works
Future value uses the standard ordinary-annuity formula: contribution × ((1 + r)^n − 1) ÷ r, where r is your annual return and n is the number of years. Each year's contribution is assumed to go in at the end of the year, so the first contribution compounds for one fewer year than a start-of-year deposit would. When you set the return to 0%, the formula collapses to contribution × years — you simply get back what you put in, with no growth.
Total contributed is your annual contribution multiplied by the number of years, and growth is the future value minus that total — the portion earned by compounding rather than deposited. In a Roth IRA this growth is never taxed on qualified withdrawal, so the headline future value is what you actually keep. The year-by-year chart and table show the balance building, contribution by contribution, so you can see how the later years do most of the heavy lifting.
The optional taxable-account comparison applies a simple capital-gains drag to the growth only: it assumes your contributions come back tax-free but the gains are taxed once at the rate you enter. Real taxable accounts are messier — dividends, annual rebalancing, and short- versus long-term rates all matter — so treat the comparison as a rough illustration of the Roth's tax advantage, not a precise after-tax number.
Frequently asked questions
Why is Roth IRA growth shown as tax-free?+
You contribute to a Roth IRA with money you have already paid income tax on, and in exchange qualified withdrawals in retirement — both your contributions and all the investment growth — come out completely tax-free, provided you are at least 59½ and the account has been open for five years. That is why this calculator shows the full future value as the headline number, with no tax subtracted at the end. It is a genuine advantage over a regular taxable brokerage account, where investment gains are taxed. This is general information, not tax advice; confirm your own eligibility and the rules with the IRS or a tax professional.
What are the income and contribution limits?+
The calculator flags contributions above $7,000 per year, which is the IRS limit for the 2024 and 2025 tax years for savers under age 50 (those 50 and older can add a catch-up amount). This figure is a fixed constant in the tool — always verify the current limit, because the IRS adjusts it over time. Separately, Roth IRAs have income limits: above certain modified adjusted gross income thresholds your allowed contribution phases down and eventually to zero. This tool does not check your income eligibility, so confirm both the current contribution limit and the income phase-out ranges before relying on any projection.
How realistic is a single fixed return rate?+
Using one constant annual return is a simplification. Real market returns are volatile — some years are strongly positive, others negative — and the order in which good and bad years fall (sequence-of-returns risk) affects your outcome, especially near retirement. A steady 7% is a common long-run stock-market planning figure, but it is not a promise, and it ignores fees and inflation. Try several return rates to see a range of outcomes rather than trusting any single projection as a prediction.