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Roth IRA Calculator for Retirement

Calculate the potential growth of your Roth IRA with tax-free retirement savings

Roth IRA Parameters

Must be 18 or older to contribute
Age when you plan to retire
$
Leave as $0 if starting new account
$
Modified Adjusted Gross Income (MAGI)
$
2024 limit: $7,000 ($8,000 if 50+)
%
Historical stock market average is 7-10%

Your Roth IRA Projection

Total Contributions
$0
Investment Growth
$0
Total Roth IRA Value at Retirement
$0
Tax-free at age 65

💰 Roth IRA Tax Advantage

Since you pay taxes upfront, your entire balance of $0 can be withdrawn tax-free in retirement, potentially saving you $0 in taxes!

35
Years to Retirement
$0
Monthly Contribution

📋 2024 Roth IRA Contribution Limits

Under 50: $7,000 annually

50 and older: $8,000 annually (includes $1,000 catch-up)

Income limits apply: Contributions phase out at higher income levels

Disclaimer: This calculator provides estimates for educational purposes. Roth IRA rules, contribution limits, and income thresholds may change. Consult a financial advisor for personalized advice. Withdrawals of earnings before age 59½ may be subject to penalties.

How this calculator works

This calculator determines your estimated investment earnings over a determined time period. We calculate your total investment growth using compound interest calculations, factoring in your initial investment, regular contributions, expected rate of return, and time horizon. All totals are rounded to the nearest dollar.

The calculator assumes that deposits made to your investment are made at the beginning of each period. For example, if you are planning to contribute $500 monthly, the calculator assumes this contribution is made at the beginning of each month. Making contributions at the beginning of each period allows your money to begin earning returns immediately, maximizing your growth potential.

Important: These calculations are hypothetical and future rates of return can't be predicted with certainty. Actual returns involve a multitude of factors, including the type of investment, market conditions, fees, and volatility.

Understanding compound interest

Compound interest is interest earned on both your original investment and previously earned interest. The more frequently interest compounds, the faster your money grows. This calculator allows you to select different compounding frequencies:

  • Annually: Interest compounds once per year
  • Quarterly: Interest compounds four times per year
  • Monthly: Interest compounds twelve times per year
  • Daily: Interest compounds 365 times per year

More frequent compounding typically results in higher returns, though the difference becomes less significant as the frequency increases beyond monthly compounding.

Key definitions

Initial Investment

The total amount you will initially invest or currently have invested. This is your starting principal that will grow over time through compound interest and additional contributions.

Monthly Contribution

Regular monthly deposits you plan to make to your investment account. Consistent contributions are one of the most powerful ways to build wealth over time through dollar-cost averaging.

Expected Annual Return

The average yearly return rate you expect from your investments. Historical data shows the S&P 500 has averaged approximately 10% annually over the long term, though individual years can vary significantly.

Investment Period

The number of years you plan to keep your money invested. Longer time horizons generally allow for more aggressive investment strategies and can help smooth out market volatility.

Investment return expectations

When setting your expected annual return, consider these historical benchmarks:

Conservative (Bonds/CDs)
2% - 4%
Moderate (Mixed Portfolio)
5% - 7%
Aggressive (Stock Market)
8% - 12%

Remember: Higher potential returns typically come with higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. Past performance does not guarantee future results.

Maximizing your investment growth

To get the most from your investments, consider these strategies:

🚀 Start Early

The power of compound interest is most effective over long periods. Starting even a few years earlier can result in significantly more wealth.

🔄 Be Consistent

Regular monthly contributions, no matter how small, can add up substantially over time through dollar-cost averaging.

📈 Stay Invested

Avoid trying to time the market. Long-term investors who stay the course typically outperform those who frequently buy and sell.

💰 Increase Contributions

When you receive raises or bonuses, consider increasing your monthly contributions to accelerate your wealth building.

Important disclaimers

This investment calculator is for educational and planning purposes only. The calculations provided are hypothetical and based on the assumptions you input. Actual investment returns will vary and can be positive or negative.

This calculator does not account for:

  • Investment fees and expense ratios
  • Taxes on investment gains
  • Inflation effects on purchasing power
  • Market volatility and timing
  • Changes in contribution amounts over time

Before making any investment decisions, consult with a qualified financial advisor who can provide personalized advice based on your individual financial situation, goals, and risk tolerance.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More