IRA Calculator
Project IRA retirement account growth over time.
An IRA calculator, or roth ira calculator, projects the growth of a Traditional or Roth IRA (Individual Retirement Account) based on your current balance, annual contributions, expected rate of return, and years until retirement. Because Traditional and Roth IRAs are taxed differently, this calculator helps illustrate how consistent contributions compound over a long investment horizon.
Enter your current IRA balance, planned annual contribution, expected annual return, and years until retirement to project your future IRA balance.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| $10,000 starting balance, $6,000/year, 7% return, 20 years | ≈$284,671 | Growth of starting balance: $10,000 × 1.07^20 ≈ $38,697. Growth of contributions: $6,000 × [(1.07^20 − 1) ÷ 0.07] ≈ $245,974. Total ≈ $38,697 + $245,974 = $284,671. |
| Same inputs, but 30 years instead of 20 | ≈$642,892 | Growth of starting balance: $10,000 × 1.07^30 ≈ $76,123. Growth of contributions: $6,000 × [(1.07^30 − 1) ÷ 0.07] ≈ $566,769. Total ≈ $642,892 - more than double the 20-year result from just 10 extra years of compounding. |
Traditional IRA vs. Roth IRA
A Traditional IRA is typically funded with pre-tax (or tax-deductible) contributions, growing tax-deferred until withdrawal in retirement, when distributions are taxed as ordinary income. A Roth IRA is funded with after-tax contributions, but qualified withdrawals in retirement - including all the investment growth - are entirely tax-free. Which is better generally depends on whether you expect to be in a higher or lower tax bracket in retirement compared to now.
IRA Contribution Limits
The IRS sets an annual contribution limit for IRAs (combined across Traditional and Roth accounts if you have both), which is periodically adjusted for inflation, plus an additional catch-up contribution allowed for those age 50 and older. Roth IRA contributions are also subject to income limits - high earners may be ineligible to contribute directly to a Roth IRA, though a backdoor Roth conversion strategy exists for those situations.
Why Starting an IRA Early Has an Outsized Effect
Like any compound-growth account, an IRA benefits enormously from time - a contribution made in your 20s has decades to compound before retirement, while the same contribution made in your 50s has much less time to grow. This is why financial advisors consistently emphasize starting IRA contributions as early as possible, even in small amounts, rather than waiting until you can contribute the maximum allowed.
How to Use the IRA Calculator
- Open the IRA Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the ira calculator works.
Frequently Asked Questions
How much can I save with a Roth IRA by age 60?
It depends on your starting age, annual contribution, and assumed rate of return - enter your specific numbers into the calculator, but consistent contributions starting decades before age 60 can compound into a substantial tax-free balance.
What's the difference between a Traditional and Roth IRA?
Traditional IRA contributions are typically tax-deductible now, with withdrawals taxed in retirement. Roth IRA contributions are made with after-tax money, but qualified withdrawals in retirement, including all growth, are completely tax-free.
Is there a limit to how much I can contribute to an IRA?
Yes, the IRS sets an annual limit (combined across Traditional and Roth IRAs) that is periodically adjusted for inflation, plus an additional catch-up contribution for those age 50 and older.
Can high earners contribute to a Roth IRA?
Roth IRA contributions phase out above certain income limits set by the IRS. High earners above those limits may be ineligible to contribute directly, though a backdoor Roth conversion strategy is sometimes used instead.
Should I choose a Traditional or Roth IRA?
It often depends on whether you expect to be in a higher tax bracket now or in retirement - Roth is often favored if you expect a higher future tax bracket, and Traditional if you expect a lower one, though individual circumstances vary.
Can I have both a 401(k) and an IRA?
Yes, many people contribute to both. They have separate contribution limits, so having a 401(k) at work doesn't prevent you from also contributing to an IRA, though income limits may affect the tax deductibility of Traditional IRA contributions if you're covered by a workplace plan.
Related Calculators
401k Calculator
Estimate 401k growth with salary contributions and employer match.
Retirement Calculator
Estimate total retirement nest egg savings, monthly income, and retirement readiness.
Compound Interest Calculator
Project future investment growth with daily, monthly, or annual compounding.
Loan Calculator
Calculate monthly loan payments, interest charges, and loan payoff terms.
Mortgage Calculator
Estimate home mortgage payments including principal, interest, taxes, and insurance.
Tip Calculator
Split restaurant bills and compute tip percentages per person easily.
Last updated: September 27, 2026.