Roth IRA calculator
Project a Roth IRA balance and the modelled tax-free withdrawal amount at retirement.
What this calculator covers
Use this calculator to project a Roth IRA balance from today's account value, yearly contributions, and an assumed annual return.
The model keeps the tax treatment explicit by showing the same ending balance as the estimated tax-free withdrawal amount in retirement.
Frequently asked questions
- How is a Roth IRA different from a traditional IRA?
- Contributions to a Roth IRA are made with after-tax dollars, meaning you get no upfront tax deduction. In exchange, qualified withdrawals in retirement — both contributions and growth — are generally tax-free. A traditional IRA typically offers a tax deduction on contributions but taxes withdrawals as ordinary income.
- Are Roth IRA contributions limited?
- Yes. Annual contribution limits are set by the IRS and adjust periodically. Eligibility to contribute also phases out at higher income levels. Check current IRS guidance for the contribution limit and income thresholds that apply to your situation.
- Why does this model show the same number for balance and tax-free withdrawal?
- This projection treats the entire balance as available for tax-free withdrawal, consistent with the Roth structure where qualified distributions are not taxed. It does not model a separate withdrawal rate or spending-down schedule — the balance and withdrawal estimate are the same figure to reflect that the full amount is potentially accessible tax-free.
- Does this account for required minimum distributions?
- No. Roth IRAs are not subject to required minimum distributions during the account owner's lifetime under current rules, which is one reason they can be attractive for estate planning. Rules can change, so confirm current requirements with IRS guidance or a financial advisor.
Tool
Run the calculation
Result
RESULT · ROTH IRA BALANCE
â„–205
Primary result
$766,240.21
$20,000.00 in a Roth IRA with $6,500.00 contributed each year at 7% grows to $766,240.21 by age 65, with the same $766,240.21 modeled as tax-free in retirement.
- Future balance
- $766,240.21
- Estimated tax-free withdrawal
- $766,240.21
- Total contributions
- $195,000.00
- Investment growth
- $551,240.21
Step-by-step solution
- 1.Use the retirement horizon implied by the ages: 65 - 35 = 30 years.
- 2.Compound the current balance and add an end-of-year contribution stream growing at 7% each year.
- 3.Because this model treats qualified Roth withdrawals as tax-free, the future balance and estimated withdrawal amount are the same $766,240.21 figure.
Walkthrough
Visual walkthrough
This Roth IRA projection combines current savings with a yearly contribution stream and keeps the tax-free withdrawal assumption explicit.
01
Set the retirement horizon
65 - 35 = 30 years
The retirement horizon is derived directly from the two ages so the projection stays consistent when either age changes.
02
Grow balance and yearly contributions
7% annual return
The starting balance compounds for the full horizon while each end-of-year contribution compounds for the years that remain after it is deposited.
03
Read the retirement balance
Qualified Roth withdrawals are modeled as tax-free here, so the projected balance also serves as the withdrawal estimate.
$766,240.21 at retirement