Roth IRA Calculator 🌱

A real example: $7,000 a year, tax-free

Suppose you contribute the $7,000 annual maximum to a Roth IRA every year from age 30 to 65, invested at a 7% average return. Here's roughly where you'd land:

• Total you contributed: about $245,000
• Balance at age 65: about $970,000
• Tax-free growth you keep: about $725,000

In a regular taxable account, that $725,000 of gains could owe tens of thousands in capital-gains tax. In a Roth, every dollar is yours to withdraw tax-free in retirement. That's why starting young matters so much — the earlier you begin, the more of your final balance is growth rather than contributions. Run your own age and contribution above.

Why a Roth IRA is so powerful

With a Roth IRA you pay tax on the money now, then it grows and comes out tax-free later. The "tax-free gains you keep" figure above is money that would be taxed in a regular account — in a Roth, it's all yours. Over decades of compounding, that tax savings can be enormous.

Roth IRA basics

• After-tax contributions: no deduction now, but tax-free growth and withdrawals later.
• Annual limits & income limits apply: the IRS sets a yearly contribution cap and phases out eligibility at higher incomes — check current figures.
• Flexible: you can generally withdraw your own contributions (not earnings) without penalty.
• Great for younger savers: the more years to grow, the bigger the tax-free payoff.

Open or grow your Roth IRA

Frequently asked questions