How the Roth IRA Growth Calculator works
Roth IRA contributions are not deductible, while qualified distributions may be tax-free. This tool projects account growth but does not determine contribution eligibility or whether a Roth account is preferable to another retirement account.
Method: Current savings and monthly-equivalent contributions compound at the selected estimated return.
Inputs to review
- Current Roth IRA balance: Use a realistic current value and test a conservative alternative.
- Annual contribution: Use a realistic current value and test a conservative alternative.
- Estimated annual return: Use a realistic current value and test a conservative alternative.
- Years invested: Use a realistic current value and test a conservative alternative.
How to interpret the result
Check the annual contribution and income rules for the tax year being modeled. Test several returns and remember that contribution limits can change over a long horizon.
Assumptions and limitations
The estimate assumes steady monthly-equivalent deposits and ignores fees. It does not model income phaseouts, conversions, withdrawal ordering, or tax law changes.
Recalculate when rates, balances, income, goals, or time horizons change. A useful estimate is a range built from several plausible scenarios, not a single precise-looking number.