How the roth IRA Calculator works
The calculator compounds your current balance forward at your expected return and adds each year's contribution at the end of the year, which is the standard future value of an annuity approach. Because Roth IRAs are funded with after-tax dollars, qualified withdrawals of both contributions and growth are tax free.
FV = Balance × (1+r)n + Contribution × ((1+r)n − 1) ÷ r
Example: a 30 year old with $5,000 saved who contributes $7,500 a year at a 7% return reaches roughly $1.1 million by 65, with about $820,000 of it being growth that is never taxed.
Frequently asked questions
How much can I contribute to a Roth IRA in 2026?
The 2026 contribution limit is $7,500, or $8,600 if you are 50 or older. Income limits also apply, and contributions phase out at higher incomes, so check the current IRS thresholds for your filing status.
Is Roth IRA growth really tax free?
Yes, qualified withdrawals are tax free once the account is at least 5 years old and you are 59 and a half or older. Contributions can be withdrawn at any time without tax or penalty.
What return should I assume?
Long-run US stock returns have averaged about 10% before inflation, but many planners model 6% to 8% to stay conservative. Your real result depends on your investment mix.