Short answer: a Roth IRA’s superpower is that growth is never taxed again if withdrawals are qualified — and over decades the growth dwarfs what you put in. Example below: $6,000 a year from age 30 to 65 at 7% turns $210,000 of contributions into a projected $1,020,842 — $800,842 of it tax-free growth. The calculator also shows the same saving in a taxable account so you can see what the tax-free treatment is worth.
Show the math
Your numbers, one step at a time. The balance, contributions and growth add up to the headline.
Year-by-year breakdown (Roth vs taxable account)
| Age | Roth IRA | Taxable account |
|---|
*Qualified Roth IRA withdrawals in retirement are tax-free under current law if the 5-year rule and age conditions are met. Educational estimate only — not financial advice. The taxable comparison approximates tax as an annual charge on that year’s gains; real taxable investing usually owes less along the way (dividends and realized gains only) and tax at sale — so treat the “value of tax-free treatment” as an illustration, not a promise. Your numbers never leave this page.
Sources: IRS IR-2025-111 (2026 IRA limit $7,500, catch-up $1,100) Figures last verified Report a wrong number
How this calculator works
Enter your current balance, yearly contribution, and the years until you stop contributing. Contributions are deposited monthly and compound monthly at your assumed return. The taxable-account comparison uses the same deposits and return but charges tax on each year’s gains (at the rate you enter) — an approximation that treats gains as realized annually, so it flatters neither side perfectly; real taxable investing defers some tax to sale. The contribution-limit field is editable and dated on purpose: it’s prefilled with the IRS limit for 2026 under age 50 ($7,500; $8,600 if 50+) — limits are set by the IRS and change, so verify the current figure at irs.gov. The tool warns you if your planned contribution exceeds the limit you entered; it does not check the income phase-outs that restrict high earners’ eligibility.
Worked example
Age 30, $10,000 balance, $6,000/year, 7% return, to age 65: – Projected Roth balance: $1,020,842, all potentially tax-free – Contributions: $210,000 · Growth: $800,842 – Same saving in a taxable account at a 15% gains tax: $792,885 – Estimated value of tax-free treatment in this illustration: $227,957
FAQs
What is the Roth IRA contribution limit? For 2026 it is $7,500 if you’re under 50 and $8,600 if you’re 50 or older — and you need earned income at least equal to your contribution. Limits change; check irs.gov for the current year before contributing. Who can’t contribute directly? Roth IRA contributions phase out at higher incomes (for 2026, $153,000–$168,000 single / $242,000–$252,000 married-joint — verify current figures). Some high earners use a “backdoor Roth” instead; that’s a separate, rule-heavy strategy. When can I withdraw? Your contributions (not earnings) can come out any time without tax or penalty. Earnings are tax-free only for qualified withdrawals — generally after age 59½ and after the account has been open 5 years. Is a Roth IRA better than a traditional IRA? It depends on your tax rate now versus in retirement: Roth wins when today’s rate is the lower one. The Roth conversion calculator on this site explores that trade-off.
Disclaimer
Educational content only — not financial or tax advice. Tax law cited is for 2026 and changes; projections use assumed smooth returns and are not guarantees.