Savings & Investing

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

$708,455.90

after 30 yrs at 7.00% — withdrawn tax-free

Total contributed

$225,000.00

Investment growth

$483,455.90

Breakdown & taxable comparison
Total contributed$225,000.00Investment growth$483,455.90Roth future value$708,455.90Taxable account (15% on gains)$635,937.51Roth advantage$72,518.38

Balance over time

Yr 1Yr 30

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.

InputScenario AScenario 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 $7,500 per year, the 2026 IRS limit for savers under age 50. People age 50 or older have a separate catch-up allowance. Roth IRAs also have income phase-outs that this tool does not check, so confirm both the current contribution limit and income eligibility before relying on a 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.

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