Roth IRA Calculator: Tax-Free Retirement
Use this Roth IRA calculator to project the tax-free balance of a Roth IRA after years of compounding. All withdrawals in retirement are tax-free if you follow IRS rules.
$
$
yrs
%
Final balance (tax-free)$0
Total contributions$0
Investment growth$0
Growth as % of total0.00%
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How this calculator works
The Roth IRA's superpower is that both contributions and growth are tax-free at withdrawal after age 59½. So the future value math is the same as a standard investment account — but the result is what you actually get to spend.
FV = P(1 + r)n + PMT × [((1 + r)n − 1) / r]
- P
- Current Roth balance (lump-sum starting amount)
- PMT
- Annual contribution (assumed end-of-year for simplicity)
- r
- Expected annual return as a decimal. 7% real is the long-term S&P 500 average after inflation; use 5% for conservative projections.
- n
- Number of years until withdrawal
The 2026 contribution limit is $7,000 ($8,000 if age 50+). Phase-outs begin at $146,000 single / $230,000 MFJ. If your income exceeds the phase-out, look up the "backdoor Roth" strategy.
Source: Roth IRA contribution limits, phase-outs and qualified-distribution rules — IRS Publication 590-A. Long-term equity returns — Federal Reserve historical data.
FAQ
Can I withdraw Roth IRA contributions early without penalty?
Yes — you can withdraw the contributions you made (not the earnings) at any age, any time, without penalty or tax. This makes a Roth IRA a useful secondary emergency fund. Withdrawing earnings before age 59½ generally triggers a 10% penalty + income tax.
Does this calculator account for inflation?
Only if you enter a 'real' (inflation-adjusted) return. The S&P 500's long-term real return is ~7%; nominal is ~10%. Using 7% gives you a result in today's dollars. Using 10% gives you a future-dollar number that overstates buying power.
Roth or Traditional IRA — which is better?
Roth wins when your retirement tax rate will be higher than today's (most people early in their career, anyone betting on rising rates, or those with large taxable balances elsewhere). Traditional wins when your retirement tax rate will be lower (high earners near peak income who'll have less in retirement). When in doubt, split — diversify your tax exposure.
What is the 2026 Roth IRA contribution limit?
$7,000 if under 50. $8,000 if 50+. Phases out for single filers $146,000-$161,000; above $161,000 = no contribution. MFJ phases out $230,000-$240,000.
Can I withdraw Roth IRA contributions before age 59½?
Yes — your CONTRIBUTIONS (principal) can be withdrawn at any time, any age, without tax or penalty. This makes a Roth IRA a secondary emergency fund. The EARNINGS portion is locked until age 59½ + 5-year rule; early earnings withdrawal triggers 10% penalty + ordinary income tax.
Roth IRA vs traditional IRA — which is better?
Same future value if your tax rate stays the same. Roth wins if your retirement tax rate will be HIGHER than today's (most people in their 20s-30s). Traditional wins if your rate will be LOWER (high earners near peak income). When uncertain, split contributions.
Is the backdoor Roth still legal in 2026?
Yes — the backdoor Roth IRA remains legal and commonly used. Contribute to a non-deductible traditional IRA, then immediately convert to Roth. Watch out for the pro-rata rule: if you have any pre-tax money in any traditional IRA, the conversion is partly taxable. Mega Backdoor via 401k is also still legal.
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