Precision Utility
Roth IRA
Calculator
2025 Limit
$7,000
50+ Catch-Up
$8,000
Estimate how much your Roth IRA could be worth at retirement. Enter your current age, retirement age, existing balance, annual contribution and expected rate of return to see your projected tax-free balance, total contributions, investment growth and estimated annual withdrawals using the 4% rule. Based on 2025 IRS contribution limits.
Roth IRA Parameters
Balance at Retirement
$0
Total Contributions
$0
Total Growth
$0
Tax-Free Withdrawals (4% Rule)
$0 / yr
How the Roth IRA calculator works
Start by entering your current age and your target retirement age. The difference between the two determines how many years your money has to grow. The longer this period, the more compound interest works in your favor.
Next, enter your current Roth IRA balance — the amount you already have saved. Then set your annual contribution. For 2025, the IRS allows up to $7,000 per year, or $8,000 if you are 50 or older. The calculator automatically adjusts the maximum when your current age is 50 or above.
Finally, set your expected annual rate of return. A common assumption for a diversified stock portfolio is 7% per year (roughly the long-term average after inflation). The calculator converts this to a monthly rate and compounds your balance each month using the future value formula: FV = PV(1+r)^n + PMT[((1+r)^n - 1)/r].
The result card shows your projected balance at retirement, total contributions made, total investment growth (earnings), and an estimated annual tax-free withdrawal using the 4% rule — a widely used guideline for sustainable retirement spending.
What you need to know about Roth IRAs in 2025
Contribution limits: The 2025 IRS annual contribution limit is $7,000 for individuals under 50 and $8,000 for those 50 and older (the extra $1,000 is called a catch-up contribution). These limits apply across all your IRAs combined — you cannot contribute $7,000 to a Roth and another $7,000 to a traditional IRA in the same year.
Income limits: Not everyone can contribute to a Roth IRA. For 2025, single filers must have a modified adjusted gross income (MAGI) below $150,000 for a full contribution. Contributions phase out between $150,000 and $165,000. For married couples filing jointly, the phase-out range is $236,000 to $246,000.
Tax-free growth: Unlike a traditional IRA or 401(k), Roth IRA contributions are made with after-tax dollars. The benefit is that all qualified withdrawals in retirement — including decades of investment growth — are completely tax-free. There are also no required minimum distributions (RMDs) during the account holder's lifetime.
Roth vs. traditional IRA: Choose a Roth IRA if you expect your tax rate to be higher in retirement than it is today, or if you value the flexibility of tax-free withdrawals. A traditional IRA may be better if you need the upfront tax deduction now and expect a lower tax rate in retirement.
The 4% rule: This retirement spending guideline suggests you can withdraw 4% of your portfolio in the first year of retirement and adjust for inflation each subsequent year, with a high probability of your money lasting 30 years. Applied to a Roth IRA, these withdrawals are entirely tax-free.
Frequently asked questions
How much can I contribute to a Roth IRA in 2025?
The 2025 IRS contribution limit for a Roth IRA is $7,000 per year if you are under 50. If you are 50 or older, you can make an additional $1,000 catch-up contribution for a total of $8,000 per year. These limits apply across all your traditional and Roth IRAs combined.
What is the income limit for Roth IRA contributions in 2025?
For 2025, single filers can contribute the full amount if their modified adjusted gross income (MAGI) is under $150,000. Contributions phase out between $150,000 and $165,000. Married filing jointly, the full contribution is available under $236,000 MAGI, with a phase-out up to $246,000.
How does a Roth IRA calculator estimate my retirement balance?
The Roth IRA calculator uses the future value formula with monthly compounding. It takes your current balance, adds your annual contributions spread monthly, and grows the total at your expected rate of return until you reach your chosen retirement age.
What is the difference between a Roth IRA and a traditional IRA?
A Roth IRA is funded with after-tax dollars and grows tax-free — you pay no taxes on qualified withdrawals in retirement. A traditional IRA gives you a tax deduction on contributions, but withdrawals in retirement are taxed as ordinary income. Roth IRAs also have no required minimum distributions.
When can I withdraw from my Roth IRA tax-free?
You can withdraw Roth IRA earnings tax-free and penalty-free after age 59½, provided the account has been open for at least five years. You can withdraw your original contributions at any time without taxes or penalties since they were made with after-tax money.
What is the 4% rule for Roth IRA withdrawals?
The 4% rule is a retirement spending guideline that suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year. Applied to a Roth IRA, these withdrawals are completely tax-free, making your money stretch further than from a traditional IRA.