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Investment Closure
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🔒 Investment Closure

The investment information provided on this page is intended for informational and educational purposes only and should not be considered as financial or investment advice. We do not offer advisory or brokerage services, and we encourage you to seek the advice of qualified financial professionals to assess your personal financial needs and objectives.

ROTH IRA Calculator

Want to grow tax-free wealth? Use our free Roth IRA calculator to quickly estimate your retirement savings growth based on your age, income, and risk tolerance. Plan for a tax-free retirement with personalized insights and projections.

Enter Your Information

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💡 You can open a Roth IRA at any age as long as you have earned income.

  • Under 18? You’ll need a parent or guardian to help set up a Custodial Roth IRA, but you can still contribute as long as you have income from a job or self-employment (like babysitting, freelancing, or working at a store).
  • 18 to 50? Prime years for maximizing contributions and taking full advantage of tax-free growth.
  • 50 or older? You can contribute more! The IRS allows catch-up contributions, letting you invest extra for retirement.
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💡 Enter the age at which you plan to retire.

  • 65 is a normal retirement age at which you can draw full Social Security benefits.
  • A younger retirement age means your Roth IRA will work harder for you over a longer period.
  • An older retirement age means your investments grow further, potentially maximizing your withdrawals.
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💡 Select your current marital status.

  • Single: For individuals who are unmarried.
  • Married but Filing Taxes Separately: For married individuals who file individual tax returns.
  • Married but Filing Taxes Jointly: For married couples who file a combined tax return.
  • Head of Household: For unmarried individuals who pay more than half the cost of keeping up a home for a qualifying person.
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💡 Enter your total annual income from wages, salaries, self-employment, or other sources of earned income before any taxes are deducted.

  • Single? Your modified adjusted gross income (MAGI) must be below $150,000 per year before taxes to contribute the full amount. Partial contributions are allowed up to $165,000.
  • Married, filing jointly? Your combined MAGI must be below $236,000 in 2025 for full contributions, with a phase-out up to $246,000.
  • Earn too much? You may still be able to contribute through a Backdoor Roth IRA strategy.
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💡 If you're just starting out and don't have an existing Roth IRA, set this to $0.

  • Higher starting balance: A larger initial balance will compound over time, significantly increasing your projected future Roth IRA value. This means you'll likely reach your retirement goals faster.
  • Lower or zero balance: If you're just beginning, your projected growth will primarily depend on your future contributions and the rate of return. However, even small contributions can grow substantially over long periods due to the power of compound interest.
  • Accuracy: Providing an accurate current balance ensures the most precise projection of your Roth IRA's future value. If you are unsure, provide your best estimation.
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💡 Enter the amount you plan to contribute to your Roth IRA each year.

  • The maximum annual contribution for individuals under 50 is approximately $7,000.
  • Individuals aged 50 or older can contribute up to $8,000 per year.
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💡 Select your preferred risk level for your Roth IRA investments.

  • Aggressive (10% RoR): Higher potential returns, but also higher potential losses. Suitable for those comfortable with market volatility.
  • Moderate (7-8% RoR): A balanced approach with moderate potential returns and moderate risk.
  • Conservative (5-6% RoR): Lower potential returns, but also lower risk. Suitable for those seeking stability and capital preservation.
How We Calculate
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  • Contribution Timing: We assume your annual Roth IRA contributions are made at the beginning of each calendar year. This allows for the maximum potential growth through compounding.
  • Investment Returns: We assume your investment returns are compounded annually. This means that earned returns are reinvested, generating further returns over time.
  • Income Growth: To account for potential salary increases and the effects of inflation, we project a consistent 3% annual increase in your earned income.
  • Rate of Return (RoR) Estimation: The average Rate of Return (RoR) for each Risk Tolerance level (Aggressive, Moderate, Conservative) is estimated based on long-term historical market averages. It's important to understand that past performance is not indicative of future results, and actual returns may vary.
  • Taxable Brokerage Account Calculations:
    • For calculations involving a taxable brokerage account, we use your marital status to determine your appropriate Marginal Tax Bracket.
    • This bracket is then used to calculate the after-tax yield of your investments.
    • This after tax yield is used to calculate the average Rate of Return (RoR) for the Taxable Brokerage Account.
  • Tax Laws: We use current tax laws and contribution limits for calculations. These are subject to change, and it's essential to consult with a qualified tax advisor for personalized advice.

Your Estimated ROTH IRA Balance at Retirement

Tax-Advantaged Growth Visualization

See how your investments could grow over time in a Roth IRA compared to a taxable account over time also how tax advantages and income limitations can significantly impact wealth accumulation.

Your Financial Future, Compared

Compare side-by-side how your initial investment could grow across different account types for long-term advantage of Roth IRA's tax-free growth.

Why Choose a Roth IRA?

Your Personalized Roth IRA Growth Advantage

Based on your inputs, at age , your estimated taxable account balance will be , while your Roth IRA is expected to yield more.

With your current income putting you in a % tax bracket, your taxable account would lose to taxes, whereas the Roth IRA retains the full amount, tax-free.

Tax Benefits That Maximize Your Retirement Savings

  • Tax-free withdrawals in retirement, unlike taxable accounts requiring capital gains tax.
  • No taxes on investment earnings each year (dividends, interest, capital gains)
  • No need to pay taxes on dividends or interest each year.
  • No Required Minimum Distributions (RMDs), unlike Traditional IRAs and 401(k)s.

Roth IRA Investment Flexibility

  • Contribute post-tax dollars now for completely tax-free growth
  • Choose from numerous investment options (stocks, bonds, ETFs, mutual funds)
  • Adjust investment strategy as retirement approaches.

Long-Term Roth IRA Benefits for Wealth Building

  • Tax-free compounding creates substantially higher net returns versus taxable accounts.
  • Estate planning advantages, heirs inherit tax-free, unlike taxable accounts.
  • Ideal for younger investors with decades ahead for tax-advantaged growth.
  • Inflation protection through tax-free withdrawal of future, larger amounts

Take Action on Your Retirement Strategy

Use our calculator to see how much more you could save with a Roth IRA compared to taxable investments based on your specific situation.

Frequently Asked Questions

What is a Roth IRA and how does it work?

A Roth IRA is a tax-free savings account for retirement. You contribute money that's already taxed, and it grows tax-free. When you retire, you can withdraw everything without paying taxes. It’s like planting a seed today and enjoying tax-free returns later.

How does a Roth IRA compare to a Traditional IRA?

The key difference is when you pay taxes. With a Roth, you pay taxes now and enjoy tax-free withdrawals later. With Traditional IRAs, you get a tax break now but pay taxes when you withdraw. Roth IRAs also don't force you to take money out at a certain age like Traditional IRAs do.

Can I convert my Traditional IRA to a Roth IRA?

Yes! It's called a Roth conversion. Just remember, you'll need to pay taxes on the amount you convert since you're moving money from a pre-tax account to an after-tax one.

What's this Backdoor Roth IRA strategy I keep hearing about?

If your income is too high to contribute directly to a Roth IRA, the Backdoor Roth is your secret passage. You first contribute to a Traditional IRA (with non-deductible funds), then convert those funds to a Roth IRA shortly after. It's a perfectly legal workaround that higher earners can use to access Roth benefits.

What can I contribute to a Roth IRA in 2025?

For 2025, you can contribute the following to a Roth IRA:

  • Under 50 years old: The annual contribution limit is $7,000.
  • 50 years or older: You can make catch-up contributions, increasing your limit to $8,000.

Reference: IRS.gov

Who's eligible to contribute based on income for 2025?

Your income determines whether you can make full, partial, or no contributions:

  • Single filers: Full contributions if you make less than $150,000; partial contributions between $150,000-$165,000; no contributions above $165,000.
  • Married filing jointly: Full contributions if your household makes less than $236,000; partial contributions between $236,000-$246,000; no contributions above $246,000.
When can I take money out of my Roth IRA?

There are two main scenarios:

  • The ideal way: Once you're at least 59½ years old and have had your Roth for at least 5 years, you can withdraw everything—including earnings—completely tax-free.
  • Early withdrawals: Taking out earnings before age 59½ typically means paying taxes plus a 10% penalty, though there are exceptions. However, you can always withdraw your original contributions (not the earnings) at any time without penalties or taxes.