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Roth IRA Calculator

See the power of tax-free growth by comparing a Roth IRA to a taxable investment account over time.

Roth IRA Inputs

CURRENT SITUATION

ANNUAL CONTRIBUTIONS

ASSUMPTIONS

Roth IRA vs Taxable Account

Roth IRA at Retirement
$0
Tax-free withdrawals
Taxable Account at Retirement
$0
After annual taxes on gains
Tax-Free Advantage
$0
Total Contributions
$0
Total Tax Paid (Taxable)
$0

Growth Comparison Over Time

Roth IRA Calculator Guide

Why Roth IRA is Powerful

Roth IRA offers **tax-free growth** and **tax-free withdrawals** in retirement. Unlike a traditional IRA or taxable brokerage account, you pay taxes on contributions upfront, but never again on the growth.

Key Benefits Highlighted by This Calculator

  • Tax-Free Growth: All investment returns grow completely tax-free.
  • Tax-Free Withdrawals: Qualified withdrawals in retirement are 100% tax-free.
  • No RMDs: Unlike traditional IRAs, Roth IRAs have no Required Minimum Distributions during your lifetime.
  • Tax Diversification: Having tax-free income in retirement gives you more flexibility with tax planning.

How This Calculator Works

Roth IRA: Contributions grow tax-free. Final balance = All growth is yours.

Taxable Account: Investment gains are taxed every year at your marginal tax rate. This significantly reduces compounding power over long periods.

Important Notes

  • Contribution limits apply (e.g., $7,000 in 2025 for under 50, $8,000 if 50+). This calculator uses your input amount.
  • Income limits may restrict direct Roth IRA contributions. Backdoor Roth strategies exist for higher earners.
  • This is a simplified model. Actual taxes, investment returns, and contribution limits change over time.