Free Financial Tool
Roth IRA Calculator
Calculate your tax-free balance at retirement and compare Roth vs. Traditional IRA. Check 2025 income phase-out limits.
Used in the Roth vs. Traditional comparison below. At equal current/retirement rates, Roth and Traditional are mathematically equivalent.
Tax-Free Balance at Retirement
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Your Contributions
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Tax-Free Growth
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Growth % of Balance
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Years to Grow
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Tax Equivalent Value
If this were in a Traditional IRA, you'd need this much pre-tax to equal the same after-tax value:
22% bracket
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24% bracket
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Roth vs. Traditional IRA Comparison
Equal-cost comparison: a Roth contribution of C after-tax has the same out-of-pocket cost as a Traditional contribution of C / (1 − current tax rate) pre-tax. Both invest the same growth, but the tax timing differs. The verdict below reflects your current vs. retirement tax rates.
Roth IRA
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After-tax (already tax-free)
Tax paid: upfront on contributions
Withdrawals: 100% tax-free
Traditional IRA (equal-cost)
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After-tax at retirement rate
Tax paid: on withdrawals
Larger pre-tax balance grows tax-deferred
Contributions vs. Tax-Free Growth Over Time
How the Roth IRA Calculator Works
Contributions grow tax-free inside a Roth IRA. The calculator compounds annually, growing your contributions until retirement.
// Each year:
annualContrib = min(annualContrib, IRA_LIMIT)
balance = (balance + annualContrib) × (1 + return)
annualContrib × = (1 + contribIncrease)
// Tax equivalent (pre-tax value of this Roth balance):
tradEquiv = rothBalance / (1 − taxRate)
// Roth vs Traditional (equal-cost comparison):
rothFinal = balance
tradFinal = balance × (1 − retireTax) / (1 − currentTax)
// At equal rates → identical. retireTax < currentTax → Traditional wins.
2025 Income Phase-Out Limits
- Single: Full contribution below $150,000 · Phases out $150,000–$165,000 · No direct contribution above $165,000
- Married filing jointly: Full contribution below $236,000 · Phases out $236,000–$246,000
- Above the limit: consider the Backdoor Roth IRA strategy
Worked Example
Age 30, retire 65, $10,000 starting balance, $7,500/year, 7% return:
- Total contributions over 35 years: ≈ $245,000
- Final tax-free balance: ≈ $1.4M
- Tax-free growth: ~$1.15M (83% of final balance)
- Traditional equivalent at 22% tax: ~$1.79M pre-tax
Frequently Asked Questions
What is the Roth IRA contribution limit for 2025?▾
The 2025 Roth IRA contribution limit is $7,000/year ($8,000 if age 50+). Contributions phase out for single filers between $150,000–$165,000 MAGI and for married filing jointly between $236,000–$246,000 MAGI.
Should I choose a Roth IRA or Traditional IRA?▾
If you expect to be in a higher tax bracket in retirement than now, Roth wins — you pay taxes now at a lower rate. If you expect a lower bracket in retirement, Traditional is better for the upfront deduction. When in doubt, Roth is often preferred for younger, lower-income earners.
When can I withdraw from a Roth IRA tax-free?▾
Contributions can be withdrawn anytime tax and penalty free. Earnings are tax-free after age 59½ and after the account is at least 5 years old. This makes the Roth IRA extremely flexible for early retirees.
What is the Roth IRA income limit for 2025?▾
Single filers: full contribution allowed below $150,000 MAGI; phases out $150,000–$165,000; no direct contribution above $165,000. Married filing jointly: phases out $236,000–$246,000. Above the limit, consider the Backdoor Roth IRA strategy.
What is a Backdoor Roth IRA?▾
If your income exceeds the Roth IRA limit, you can contribute to a non-deductible Traditional IRA and then convert it to a Roth IRA (the 'backdoor' strategy). This lets high earners access Roth tax-free growth. Consult a tax advisor for the pro-rata rule implications.
Related Calculators
Example Scenarios — See the Real Numbers