A Roth IRA is the only mainstream retirement account where the growth is never taxed: you contribute money you have already paid tax on, and every dollar of compounding after that is yours. This calculator projects your Roth IRA year by year — balance, contributions, and the tax-free growth between them — with your real return assumptions, not a marketing average.
How this projection works
Each year, your balance grows by the net return you enter, and then your annual contribution is added. Repeat for as many years as you enter, and the year-by-year table shows the balance, what you put in, and what growth did — separately, so you can see the compounding curve instead of trusting it.
That growth share is the whole story of a Roth: early on, contributions dominate; by the end of a long horizon, compounding dominates. The table makes the crossover visible.
balance[n] = balance[n-1] × (1 + netReturn)
+ annualContributionNotice the return is net. A 0.2% expense ratio sounds trivial, but over 30 years it compounds into real money — that's why the field asks for expected return minus your fund's expense ratio. Find your real fee in the fund prospectus and do the subtraction honestly.
The sample, end to end. You have $42,000 in your Roth IRA and contribute the 2026 maximum of $$7,500 a year for 30 years, earning 8% net of fees. You end with $$1,272,256. You put in $225,000 — growth did the other $1,047,256, roughly 82% of the final balance, and not one dollar of it is ever taxed. By year 10 the balance is $$199,324.
Terms & definitions
Tax-free compounding
Growth on which no tax is ever owed. The defining feature of a Roth IRA — the reason the growth share of the projection matters so much.
Five-year rule
The requirement that a Roth IRA be open at least five tax years before earnings can be withdrawn tax-free, even after age 59½.
Qualified withdrawal
A withdrawal taken at 59½ or older after the five-year rule is satisfied — completely tax-free.
Catch-up contribution
An extra amount people 50+ may contribute beyond the standard annual limit.
Frequently asked questions
What is the five-year rule?
A Roth IRA must be open for at least five tax years before earnings can come out tax-free — the clock starts January 1 of the year you make your first Roth IRA contribution. Once you're 59½ and the five-year rule is satisfied, every withdrawal is fully qualified and tax-free. Conversions into a Roth have their own five-year clocks for penalty purposes, which this calculator does not model — and neither does it model backdoor Roth contributions.
Can I lose money in a Roth IRA?
Yes. A Roth IRA is an investment account, not a savings account — its value rises and falls with the market. What the account guarantees is the tax treatment, not a return. That is why the return field above is an assumption you should stress-test, not a prediction.
What are the 2026 contribution limits?
For 2026 the IRS IRA limit is $7,500, with an additional catch-up of about $1,100 if you're 50 or older. Your total across all IRAs (Roth and traditional combined) cannot exceed that limit. If your income is higher, eligibility phases out gradually — see the IRS page in the references for the current thresholds.
What happens if I withdraw early?
Your direct contributions can come out at any time, tax- and penalty-free — you already paid tax on them. Earnings are different: before age 59½ they're generally taxable plus a 10% penalty, subject to exceptions like a first-time home purchase (up to $10,000) and disability. The growth is where the Roth's value compounds, so early raids are expensive.
References
- IRS — Roth IRAs: irs.gov/retirement-plans/roth-iras
- IRS Newsroom IR-2025-111 — 2026 IRA limit $7,500; age-50+ catch-up about $1,100
- Investor.gov — compound interest calculator and fundamentals: investor.gov