Investing
Roth IRA calculator
Enter your balance, yearly contribution and expected return to project a Roth IRA, then compare it with a taxable account where earnings are taxed each year.
Some inputs need attention. The results below are from your last valid entries.
Assumptions
Contributions are added at year end and the return is constant. The taxable account pays tax on positive earnings every year, which is a simplification (real holdings can defer gains). Contribution limits, income eligibility and withdrawal rules are not checked. Not guaranteed.
Roth IRA vs taxable account
| Year | Total contributed | Roth balance | Taxable balance |
|---|---|---|---|
| 1 | $12,000 | $12,350 | $12,280 |
| 2 | $19,000 | $20,215 | $19,968 |
| 3 | $26,000 | $28,630 | $28,086 |
| 4 | $33,000 | $37,634 | $36,659 |
| 5 | $40,000 | $47,268 | $45,712 |
| 6 | $47,000 | $57,577 | $55,271 |
| 7 | $54,000 | $68,607 | $65,367 |
| 8 | $61,000 | $80,410 | $76,027 |
| 9 | $68,000 | $93,038 | $87,285 |
| 10 | $75,000 | $106,551 | $99,173 |
| 11 | $82,000 | $121,009 | $111,726 |
| 12 | $89,000 | $136,480 | $124,983 |
| 13 | $96,000 | $153,034 | $138,982 |
| 14 | $103,000 | $170,746 | $153,765 |
| 15 | $110,000 | $189,698 | $169,376 |
| 16 | $117,000 | $209,977 | $185,861 |
| 17 | $124,000 | $231,676 | $203,269 |
| 18 | $131,000 | $254,893 | $221,652 |
| 19 | $138,000 | $279,735 | $241,065 |
| 20 | $145,000 | $306,317 | $261,564 |
| 21 | $152,000 | $334,759 | $283,212 |
| 22 | $159,000 | $365,192 | $306,072 |
| 23 | $166,000 | $397,756 | $330,212 |
| 24 | $173,000 | $432,599 | $355,704 |
| 25 | $180,000 | $469,880 | $382,623 |
| 26 | $187,000 | $509,772 | $411,050 |
| 27 | $194,000 | $552,456 | $441,069 |
| 28 | $201,000 | $598,128 | $472,769 |
| 29 | $208,000 | $646,997 | $506,244 |
| 30 | $215,000 | $699,287 | $541,593 |
What this Roth IRA projection shows
A Roth IRA is funded with money you have already paid income tax on. In exchange, qualified withdrawals in retirement are generally tax-free, so the growth is not reduced by tax. This calculator projects the balance from your starting amount, yearly contribution, expected return and time horizon, then sets it beside the same savings in an ordinary taxable account.
Methodology
Each year the balance is multiplied by (1 + return) and your contribution is added at year end, which gives the closed form FV = B(1+r)^n + C((1+r)^n − 1)/r. For the taxable comparison, the same contributions go in, but positive earnings are reduced by the tax rate you enter every year, so the effective growth rate is r×(1 − tax). That is a simplified stand-in for dividend and capital-gains drag, and it ignores deferral of unrealized gains, so the true gap could be smaller. Nothing here checks contribution limits or eligibility.
About the contribution amount
The $7,000 default is only a starting figure. Annual IRS contribution limits, catch-up rules and income phase-outs change over time, so confirm the current numbers on IRS.gov before contributing.
Using the results well
- Run a lower return to see a cautious case; markets do not deliver a smooth rate.
- Roth accounts are not always the better choice. If you expect a much lower tax rate in retirement, a traditional account can win. See our Roth vs traditional IRA guide.
- Prefer to model regular monthly saving? Try the compound interest calculator or check the bigger picture with the retirement calculator.
Frequently asked questions
What is the Roth IRA contribution limit?
It is set by the IRS and changes over time, and it can be reduced or eliminated at higher incomes. This calculator does not enforce it. Look up the current limit on IRS.gov before you rely on any contribution amount.
Why does the taxable account come out lower?
Because tax on earnings each year reduces the amount left to compound. The higher the tax rate you enter and the longer the horizon, the larger the gap in this simplified model.
Is the Roth balance what I will spend?
It is a nominal, pre-inflation projection. Future dollars buy less than today's, so consider lowering the return by expected inflation, or use the inflation calculator, to think in today's purchasing power.
Does this include employer plans or a pre-tax comparison?
No. It models a single Roth IRA against a taxable account only. Traditional IRAs and 401(k) plans have different tax timing.
This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.
Comparing where to open an account? See our providers to compare.
Related tools
401(k) Calculator with Employer Match
Project your 401(k) balance with an employer match, salary growth and investment returns, and see how much free match you may be leaving behind.
InvestingCompound Interest Calculator
See how an initial deposit and regular contributions grow over time with compound interest. Adjust rate, frequency and years.
InvestingInvestment Return Calculator (CAGR & ROI)
Calculate the compound annual growth rate (CAGR), total return and ROI of an investment and project it forward.