Roth IRA Calculator

Future value of a Roth IRA with yearly contributions and tax-free growth. Results update as you type.

Current balance

Annual contribution

Annual return (%)

Years to grow

Future value

$0.00

Cost breakdown

How this calculator works

The annual contribution is spread monthly. The balance grows monthly at the annual return divided by twelve, with the contribution added each month. Because Roth contributions are after tax, qualified withdrawals in retirement are tax-free.

Results are estimates for education only and are not financial advice.

Are Roth IRA withdrawals really tax-free?

Qualified withdrawals in retirement are generally tax-free, because contributions are made with after-tax money. Annual contribution limits apply, so check the current IRS rules for your situation.

The formula behind Roth IRA growth

Monthly contribution = annual contribution ÷ 12. Each month, balance = previous balance × (1 + r) + monthly contribution, where r is the monthly return (annual return ÷ 12). Over n months this is the same as: future value = starting balance × (1 + r)^n + monthly contribution × ((1 + r)^n − 1) ÷ r.

How the calculation works, step by step

The annual contribution is spread evenly across the 12 months of each year.
The monthly return is the annual return divided by 12.
Each month, the balance grows by the monthly return and then that month's contribution is added, with contributions counted at month end.

Worked example

Start with a $5,000 balance and contribute $7,000 a year, or $583.33 a month, at a 7% annual return for 30 years. The balance grows to $752,232, made up of $215,000 contributed and $537,232 in tax-free earnings.

Can I contribute to a Roth IRA and a 401(k) at the same time?

Yes. They are separate accounts with separate rules, so contributing to one does not block the other. Each has its own annual limits and eligibility rules, so check the current IRS rules for both.

What if my income is too high for a direct Roth IRA contribution?

Direct Roth IRA contributions phase out above certain income levels, and the limits change over time. If you are above the range, check the current IRS rules before contributing, since other routes have their own tax consequences.