GrowthCalc › Roth IRA Growth Calculator
Roth IRA Growth Calculator: how it works
A Roth IRA is funded with money you have already paid tax on, and in exchange the growth comes out tax-free in retirement. That makes it the account where compound interest is worth the most, because every dollar of interest in the final balance is a dollar you keep.
The preset spreads the 2025 contribution limit of $7,000 across the year as $583 a month, starts from a $5,000 balance, assumes a 7 percent return compounded monthly over 35 years, and switches on a 3 percent inflation view. Adjust the monthly figure if you are over 50 and eligible for the catch-up contribution.
Why contribution timing changes the result
Contributions can be made any time until the tax filing deadline, which tempts people to fund the account in a lump sum each April. Money invested earlier compounds longer, so contributing in January or monthly from January usually beats a last-minute April deposit by a few percent over a career. Switch the contribution timing between "start" and "end" of the month to see the small but real difference; the gap between January and April funding is larger still.
- Limits change most years; check the current figure before setting the monthly amount.
- Income limits apply to direct Roth contributions; the backdoor route exists for high earners.
- Contributions (not growth) can be withdrawn at any time without penalty, which makes a Roth a reasonable second emergency fund.
Reading the contributions vs growth split
With the preset values, total contributions over 35 years are about $250,000 and the final balance is several times that. The difference is tax-free growth, the single biggest argument for starting a Roth in your twenties even with small amounts. Use the yearly table to spot the crossover year when annual growth overtakes your annual contribution.
Returns are not guaranteed and this is not financial advice. Use the scenario comparison in GrowthCalc Pro to run 5, 7 and 9 percent side by side and plan for the lower one.
Frequently asked questions
How much will a Roth IRA be worth in 30 years?
Maxing a $7,000 annual contribution at a 7 percent return grows to roughly $700,000 in 30 years, of which about $210,000 is contributions. Change the inputs above to match your own start date and return assumption.
Should I contribute monthly or once a year?
Monthly from January, or a lump sum as early in the year as you can afford. Both beat waiting until the deadline because the money compounds longer.
Is Roth growth really tax-free?
Qualified withdrawals after 59½ and once the account is five years old are federal-tax-free. Rules can change; this calculator does not model taxes.
Can I model the catch-up contribution after 50?
Yes. Save the current plan as a scenario, then raise the monthly amount for the later years in a second scenario using the contribution increase field.
Looking for the full guide, tips and the complete FAQ? Read the main GrowthCalc page.