Roth IRA Calculatorv1.0.0

Compare a Roth IRA against a taxable investment account to see which option may better support your retirement savings. Enter your current balance, annual contribution, expected rate of return, and ages to project growth, interest earned, and taxes paid. Use the results to plan contributions, evaluate tax impact, and understand how compound growth affects long-term outcomes.

• Enter Current Balance, Annual Contribution (or select Maximize Contributions), Expected Rate of Return, Current Age, Retirement Age, and Marginal Tax Rate.
• Click Calculate to generate projections for a Roth IRA and a taxable account.
• Review Balance at Retirement, Total Principal, Total Interest, Total Tax (taxable only), and the Difference in Final Value.
• Scroll to the Annual Schedule to view year-by-year growth for principal, Roth IRA, and taxable balances.
• Use query parameters in the URL or saved localStorage values to prefill inputs and run quick comparisons.

• Plan retirement savings and compare Roth IRA vs taxable account outcomes for different return and tax assumptions.
• Test contribution strategies and see how maximizing contributions changes the final balance at retirement.
• Model tax drag in a taxable account and estimate how annual taxes reduce compounding over time.
• Explore time horizons by adjusting current and retirement ages to gauge the benefit of starting earlier.
• Support financial education by visualizing compound interest and after-tax returns for personal finance learning.

Run a baseline scenario with a starting balance and steady contributions to compare Roth IRA and taxable growth. Increase the marginal tax rate to observe how higher taxes reduce the taxable account’s ending value. Raise the expected rate of return to see how both accounts benefit from compounding, while the Roth IRA preserves more gains because withdrawals are tax-free when qualified. Toggle Maximize Contributions to evaluate the effect of using current contribution limits. Shorten the time horizon to test late-start scenarios and identify contribution levels required to reach a target balance by your retirement age.

The calculator applies annual compounding to both accounts. The Roth IRA grows tax-free and adds your annual contribution at each period. The taxable account calculates yearly interest, applies taxes using your marginal tax rate, and then adds the annual contribution. The tool records year-by-year values in the schedule to show how principal, interest, and taxes interact across your timeline.

Does the calculator include contribution limits? Yes. Selecting Maximize Contributions applies built-in annual limits and a higher catch-up amount for older savers.
Does the calculator model investment fees? No. You can approximate fees by lowering the expected rate of return.
Are Roth IRA withdrawals always tax-free? Qualified withdrawals are tax-free when rules are met. Review IRS guidance or consult a professional for eligibility.
Does the taxable account use capital gains rates? The model applies your marginal tax rate as a simple annual tax on interest to illustrate tax drag.

This tool is intended for informational and educational purposes only. It does not provide financial, investment, or tax advice. The amounts and payments shown are estimates and may not reflect actual figures. Results are not guaranteed and may vary based on individual circumstances. Always consult a qualified financial advisor before making any financial decisions.