Using the Roth IRA Calculator
The money contributed to a Roth account and the later investment growth are different parts of the balance. This tool projects their combined value; it does not compare the full lifetime tax cost of Roth and traditional accounts.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Starting balance
- 10000
- Monthly contribution
- 200
- Annual nominal return (%)
- 5
- Years
- 10
- Employer monthly contribution (if any)
- 0
- Withdrawal tax assumption (%)
- 0
Example result
- Future balance
- 47,526.55
- Total contributions
- 34,000
- Growth
- 13,526.55
- After assumed withdrawal tax
- 47,526.55
Method and assumptions
Projection only. Contributions, employer match and tax treatment are user assumptions; eligibility, statutory limits, penalties and required distributions are not evaluated. Roth qualified withdrawals may be tax-free.
Use consistent assumptions over time
A retirement projection depends on when contributions or withdrawals happen, the rate used and the number of periods. Keep those assumptions visible when comparing scenarios. An amount expressed in future currency is not automatically equivalent to the same amount of purchasing power today. Tax treatment and account rules should be checked separately wherever the model does not include them.
Common question
Why is there a withdrawal-tax field on a Roth calculator?
It allows scenario comparisons and makes the tax assumption explicit. For a qualified tax-free withdrawal scenario, leave it at zero; the tool does not determine whether the qualification rules are met.
Guide updated .