Roth IRA Calculator
Estimates how much your Roth IRA will be worth at retirement based on your current balance, monthly contributions, time horizon, and expected annual return. Use it when planning tax-free retirement income.
About this calculator
A Roth IRA grows through compound interest on both your existing balance and future contributions. The formula combines two parts: the future value of your current balance — currentBalance × (1 + r)^n — and the future value of your ongoing annual contributions — monthlyContribution × 12 × ((1 + r)^n − 1) / r — where r is the annual return rate as a decimal and n is years to grow. Because Roth IRA withdrawals in retirement are tax-free, the projected balance represents spendable income. This calculator assumes a constant annual return, which is a simplification; real market returns vary year to year. Still, it gives a reliable baseline for retirement planning conversations.
How to use
Suppose you have a current balance of $10,000, contribute $300/month, expect a 7% annual return, and have 25 years until retirement. Step 1 — Future value of current balance: $10,000 × (1.07)^25 = $54,274. Step 2 — Future value of contributions: $300 × 12 × ((1.07)^25 − 1) / 0.07 = $3,600 × 17.888 = $64,397. Step 3 — Add both: $54,274 + $64,397 = $118,671. Your Roth IRA could be worth approximately $118,671 at retirement.
Frequently asked questions
How much should I contribute to my Roth IRA each month to reach my retirement goal?
The right monthly contribution depends on your current balance, years until retirement, and expected return. A common starting point is maximizing the IRS annual limit ($7,000 in 2024, or $8,000 if you're 50+). Use this calculator to work backwards from your target balance to find the monthly contribution needed. Even small increases in monthly contributions can dramatically raise your ending balance thanks to compounding over decades.
What expected annual return rate should I use for my Roth IRA calculation?
Most long-term retirement projections use a 6–7% average annual return, which reflects historical S&P 500 performance after accounting for inflation. Conservative investors might use 5%, while aggressive stock-heavy portfolios sometimes assume 8–9%. The actual return you experience will vary each year, but a steady average is a reasonable planning assumption. Avoid using short-term market performance as your benchmark.
Why is a Roth IRA better than a traditional IRA for long-term growth calculations?
With a Roth IRA, your contributions are made with after-tax dollars, meaning all growth and qualified withdrawals in retirement are completely tax-free. This makes the projected balance in this calculator a true representation of spendable funds — unlike a traditional IRA where you'll owe ordinary income tax on withdrawals. Over decades, tax-free compounding can save tens of thousands of dollars. Roth IRAs also have no required minimum distributions (RMDs), giving you more flexibility in retirement.