Roth IRA Growth Calculator
A Roth IRA is funded with money that has already been taxed, and qualifying withdrawals are tax free. The benefit is not a deduction today but decades of compounding that the tax authority never touches.
Projected balance
$604,825.99
- Total contributions
- $180,000.00
- Tax-free growth
- $419,825.99
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Future value = sum of contributions x (1+r)^t, plus existing balance grown
- balance
- Current Roth IRA balance
- contribution
- Amount added each year
- r
- Expected annual return
- t
- Years until withdrawal
How to check the result by hand
- 1
Note the current balance
Start from what is already in the account. Existing contributions and their growth both continue to compound.
- 2
Choose a realistic return
A diversified portfolio might average 6% to 8% a year over long periods, though returns are volatile and the sequence matters along the way.
- 3
Grow the balance forward
Multiply the current balance by one plus the return raised to the number of years.
- 4
Add the future value of contributions
Each annual contribution grows for the years remaining after it is made. The annuity formula sums that series into a single figure.
- 5
Add the two parts
Balance growth plus contribution growth gives the projected balance, all of which is available tax free if the withdrawal rules are met.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Roth IRA Growth page.