Roth IRA Future Value Calculator (US)
Estimate your tax-free retirement savings growth through annual contributions.
Contribution Details (USD)
Uses the current typical maximum contribution limit.
Projected Tax-Free Value
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USD
Wealth Breakdown
| Total Contributed (Principal): | — |
|---|---|
| Total Tax-Free Earnings: | — |
| Compounding Years: | — |
Roth IRA: Tax-Free Growth
The **Roth IRA Calculator** estimates the value of a retirement account where contributions are made with **after-tax dollars**. The major advantage is that all future growth, earnings, and qualified withdrawals in retirement are $\mathbf{100\%}$ **tax-free**. This is generally beneficial for individuals who expect to be in a higher tax bracket during retirement than they are now.
Future Value of Annual Annuity
This tool calculates the Future Value (FV) of a series of annual contributions (an annuity):
$$\text{FV} = \text{Annual P} \cdot \frac{(1 + r)^n – 1}{r} \cdot (1+r)$$ Where: $\text{Annual P}$ is the contribution, $r$ is the Annual Rate, and $n$ is the Years remaining.
Roth vs. Traditional IRA (FAQ)
What is the key difference between Roth and Traditional?
**Roth:** Pay tax today; withdraw tax-free later. **Traditional:** Contributions are tax-deductible today (pre-tax); withdrawals are taxed as ordinary income in retirement. The optimal choice depends on whether you expect your tax rate to be higher or lower in retirement.