{
  "slug": "roth-ira",
  "title": "Roth IRA Calculator",
  "heading": "Roth IRA Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/roth-ira",
  "summary": "Tax-free growth projection versus a taxable account.",
  "description": "Roth contributions are made with after-tax money, but the growth and the withdrawals are tax-free. The advantage compounds — the longer the runway, the bigger the gap versus a taxable brokerage account.",
  "formula": "Both accounts compound identically; the taxable comparison deducts capital gains tax on growth at the end.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=roth-ira",
  "inputs": [
    {
      "id": "balance",
      "label": "Current balance",
      "kind": "number",
      "hint": null,
      "default": 12000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "annual",
      "label": "Annual contribution",
      "kind": "number",
      "hint": null,
      "default": 7000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "years",
      "label": "Years to grow",
      "kind": "number",
      "hint": null,
      "default": 30,
      "unit": null,
      "min": 1,
      "max": null
    },
    {
      "id": "returnPct",
      "label": "Annual return",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": "%",
      "min": 0,
      "max": null
    },
    {
      "id": "cgTax",
      "label": "Capital gains rate",
      "kind": "number",
      "hint": null,
      "default": 15,
      "unit": "%",
      "min": 0,
      "max": 45
    }
  ],
  "outputs": [
    {
      "id": "balance",
      "label": "Roth balance (tax-free)",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "contributed",
      "label": "Total contributed",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "growth",
      "label": "Investment growth",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "taxable",
      "label": "Same money in a taxable account",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "advantage",
      "label": "Roth tax advantage",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Current balance: 12000 $",
      "Annual contribution: 7000 $",
      "Years to grow: 30",
      "Annual return: 7 %",
      "Capital gains rate: 15 %"
    ],
    "outputs": [
      "Roth balance (tax-free): $752,572.56",
      "Total contributed: $222,000.00",
      "Investment growth: $530,572.56",
      "Same money in a taxable account: $672,986.68",
      "Roth tax advantage: $79,585.88"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter current balance ($).",
      "Enter annual contribution ($).",
      "Enter years to grow.",
      "Enter annual return (%).",
      "Enter capital gains rate (%).",
      "Read your roth balance (tax-free) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "balance": 7000,
        "annual": 4000,
        "years": 18,
        "returnPct": 4.2,
        "cgTax": 9
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "balance": 12000,
        "annual": 7000,
        "years": 30,
        "returnPct": 7,
        "cgTax": 15
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "balance": 19000,
        "annual": 11000,
        "years": 48,
        "returnPct": 11.200000000000001,
        "cgTax": 24
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the roth ira calculator work?",
      "a": "Roth contributions are made with after-tax money, but the growth and the withdrawals are tax-free. The advantage compounds — the longer the runway, the bigger the gap versus a taxable brokerage account. The underlying maths is: Both accounts compound identically; the taxable comparison deducts capital gains tax on growth at the end."
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: current balance, annual contribution, years to grow, annual return, and capital gains rate. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the roth balance (tax-free) result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/401k",
    "https://www.revenuelab.fyi/toolbox/retirement"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Roth IRA Calculator (https://www.revenuelab.fyi/toolbox/roth-ira)"
}