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Roth IRA Calculator

Contributions go in after-tax, but everything this account earns from here comes out tax-free in retirement.

Initial deposit

Monthly contribution

Expected annual return

Years to grow: 20

Growth over time

What you entered

Initial deposit: $1,000Monthly contribution: $300Expected return: 7%/yrYears: 20

1
Total months to compound
n = 20 years × 12= 240 months
2
Monthly return rate
r = 7% ÷ 12= 0.5833%
3
Compound monthly, adding your deposit each time
balance = balance × (1 + r) + $300.00, starting from $1,000.00, repeated 240×= $160,316.74
4
Total you contributed (not counting interest)
$1,000.00 + $300.00 × 240 months= $73,000.00
5
Interest earned
$160,316.74 − $73,000.00 contributed= $87,316.74

Result

Final balance: $160,317

Of your $160,317 final balance, $73,000 came from your own deposits and $87,317 came from compound interest — compounding did roughly 120% of the work your contributions did.

Roth IRA balance from regular monthly contributions at 7%

Each cell starts from zero and contributes the monthly amount shown, compounding at 7% a year. Because a Roth is funded with after-tax money, qualified withdrawals are tax-free, so these balances are what you actually get to spend.

Monthly contribution	After 10 years	After 20 years	After 30 years	After 40 years	Contributed over 30 years
$100	$17,308	$52,093	$121,997	$262,481	$36,000
$250	$43,271	$130,232	$304,993	$656,203	$90,000
$500	$86,542	$260,463	$609,985	$1,312,407	$180,000
$1,000	$173,085	$520,927	$1,219,971	$2,624,813	$360,000
$1,500	$259,627	$781,390	$1,829,956	$3,937,220	$540,000
$2,000	$346,170	$1,041,853	$2,439,942	$5,249,627	$720,000

The tax treatment is the whole point of the account, and it is what these figures assume: contributions go in after tax, growth is untaxed, and qualified withdrawals in retirement are tax-free. A traditional IRA reverses that - a deduction now, tax on the way out - so the same balance is worth less after tax. A Roth is generally the better bet when you expect a higher marginal rate in retirement than today, which often favours younger or lower-earning savers. Annual contribution limits apply and are adjusted periodically, with an extra catch-up allowance from 50, and eligibility phases out above certain incomes. Contributions, though not growth, can normally be withdrawn at any time without penalty. Confirm current limits before relying on a projection.

Taxed now, tax-free later

Roth contributions don't reduce your taxable income today, but qualified withdrawals in retirement — including all the growth shown here — are completely tax-free, which can be a huge advantage if you expect to be in a similar or higher tax bracket later.

Contribution limits and income phase-outs apply

Roth IRAs have an annual contribution limit, and the ability to contribute directly phases out above certain income levels — this calculator projects growth assuming your contributions are allowed; check current-year IRS limits separately.

Roth IRA vs. Traditional IRA

Roth IRA: contribute after-tax dollars, withdraw tax-free. Traditional IRA: contribute pre-tax (deduction now), pay income tax on withdrawals. Roth wins if your tax rate rises by retirement. Traditional wins if you're at peak earnings. Young earners in low brackets almost always benefit more from Roth.

Withdrawal flexibility

You can withdraw your Roth contributions (not earnings) at any time, tax-free and penalty-free — they've already been taxed. Earnings withdrawn before age 59½ face taxes and a 10% penalty unless you qualify for an exception (first home purchase, disability, etc). After 59½ with a 5-year-old account, everything comes out free.

Frequently asked questions

How much can I contribute to a Roth IRA in 2024?

$7,000 per year ($8,000 if age 50+). Income phase-outs: ability to contribute starts phasing out at $146,000 MAGI for single filers, $230,000 for married filing jointly. Above $161,000 single or $240,000 married, you can't contribute directly — but can use a backdoor Roth conversion.

Is a Roth IRA better than a 401(k)?

They serve different purposes. Always contribute enough to a 401(k) to get the full employer match first (free money). Then, if you're in a lower tax bracket, a Roth IRA offers tax-free growth, more investment choices, no required minimum distributions, and penalty-free contribution withdrawals. Ideally, use both.

How much will a Roth IRA grow in 20 years?

Contributing $7,000/year at 7% average return for 20 years gives about $305,000 — of which $140,000 is contributions and $165,000 is tax-free growth. At 10% return: ~$440,000. The longer the time horizon, the more valuable tax-free compounding becomes.