Roth IRA Calculator | Bankrate (2024)

Investing Disclosure

The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal.

A Roth IRA is one of the most popular ways to save for retirement, and it offers some big tax advantages, including the ability to withdraw your money tax-free in retirement. Traditional IRAs offer the potential for tax deductibility in the present, while Roth IRAs are funded with after-tax dollars. Use this Roth IRA calculator to find the amount you could save using a Roth IRA.

Popular next steps

See what's out there

Best Roth IRA accounts

Browse the top brokerages to open a Roth IRA right now.

Get started

How to open a Roth IRA

Learn the steps to take to open a Roth IRA and start saving for retirement today.

Go further

Roth IRA vs. traditional IRA: Which is better for you?

Compare the two top retirement accounts and decide which one is right for you.

Definitions

Starting balance: The current balance of your Roth IRA.

Annual contributions: The amount you will contribute to your Roth IRA each year. This calculator assumes that you make your contribution at the beginning of each year. It is important to note that this is the maximum total contributed to all of your IRA accounts. The contribution limit is adjusted for inflation over time.
If you are age 50 or older you can make an additional 'catch-up' contribution of $1,000. The 'catch-up' contribution amount of $1,000 is not subject to a cost-of-living adjustment. In order to qualify for the 'catch-up' contribution, you must turn 50 by the end of the year in which you are making the contribution.
- If the contribution amount you input is less than $6,500, the calculator will use that number for all ages until retirement age.
- If the contribution amount is between $6,500 and $7,500, then $6,500 will be applied for all years until age 50, with the amount you input being used for all ages beyond that.
- If the amount you input is over $7,500 then the calculator assumes you want to maximize contributions, so both contribution limits will be applied, as determined by your age.

It is important to note that Roth IRA contributions are limited for higher incomes. If your income falls in a 'phase-out' range you are allowed only a prorated Roth IRA contribution. If your income exceeds the phase-out range, you do not qualify for any Roth IRA contribution. For the purposes of this calculator, we assume that your income does not limit your ability to contribute to a Roth IRA. The table below summarizes the income 'phase-out' ranges for Roth IRAs.

Roth IRA 2023 Contributions Phaseout

Tax filing status	2023 Income Phase-Out Range
Married filing jointly or head of household	$218,000 - $228,000
Single	$138,000 - $153,000
Married filing separately	$0 - $10,000

Source: IRS

*For the purposes of this calculator, we assume you are not Married filing separately and contributing to a Roth IRA. High income individuals have the option to make non-deductible traditional IRA contributions and then immediately convert them to a Roth IRA. This process, known as a backdoor Roth IRA, can effectively eliminate the income phase-out for Roth IRA contributions.

Current age: Your current age.
Age of retirement: Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your IRA. So if you retire at age 65, your last contribution is assumed to have happened when you were actually 64.
Expected rate of return: The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending April 28, 2023, had an annual compounded rate of return of 12.37 percent, including reinvestment of dividends. The S&P 500 has returned about 10 percent annually over the long term.Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances and are typically FDIC insured.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.
Marginal tax rate: The marginal tax rate you expect to pay on your taxable investments. Use the table below to assist you in estimating your federal tax rate. The taxable account results assume that all investment returns are taxed as income and/or short-term capital gains.

Filing status and income tax rates 2022-2023

Tax Rate	Married Filing Jointly or Qualified Widow(er)	Single	Head of Household	Married Filing Separately
10%	$0 to $20,550	$0 to $10,275	$0 to $14,650	$0 to $10,275
12%	$20,551 to $83,550	$10,276 to $41,775	$14,651 to $55,900	$10,276 to $41,775
22%	$41,776 to $89,075	$41,776 to $89,075	$55,901 to $89,050	$83,551 to $178,150
24%	$178,151 to $340,100	$89,076 to $170,050	$89,051 to $170,050	$89,076 to $170,050
32%	$340,101 to $431,900	$170,051 to $215,950	$170,051 to $215,950	$170,051 to $215,950
35%	$431,901 to $647,850	$215,951 to $539,900	$215,951 to $539,900	$215,951 to $323,925
37%	$647,851 or more	$539,901 or more	$539,901 or more	$323,926 or more

Source: IRS

Total contributions: The total amount contributed to this IRA.
Maximize contributions: Check this box to contribute the maximum allowed to your account each year. This includes the additional catch-up contribution available when you are age 50 or over.
Total taxable savings: The total amount you would have accumulated by retirement in a taxable savings account.
Roth total at retirement: Total value in your Roth IRA at your retirement. To take any distributions that include earnings that are tax free, the Roth IRA must be opened for 5 tax years. Eligible tax free distributions include those taken for death or disability, after age 59-1/2, or for a first time home purchase.

Compare Investments and Savings Accounts

INVESTMENTSArrow Right

Best Safe Investments
Best Brokerage Acct Bonuses
Best Ways to Invest $30K
Best Online Brokers for Stocks
Best Brokers for Low Fees
Brokerage Accts
Robinhood
Merrill Edge
Vanguard
Fidelity

SAVINGS AND CD RATESArrow Right

CD Rates
Savings Rates
Money Market Rates

FAQs

How much will a Roth IRA grow in 10 years? ›

Let's say you open a Roth IRA and contribute the maximum amount each year. If the base contribution limit remains at $7,000 per year, you'd amass over $100,000 (assuming a 8.77% annual growth rate) after 10 years. After 30 years, you would accumulate over $900,000.

Is $100 a month good for Roth IRA? ›

Investing $100 per month will grow to more than $160,000 when you are ready to retire in 47 years. At $500 a month, the same 20-year-old would retire with more than $800,000 if they stuck to their saving. If you bump that number up to $1,000 per month, your total will grow to over $1.6 million for retirement.

View Details ›

How much would $5000 in an IRA be worth in 20 years? ›

If you contribute 5,000 dollars per year to a Roth IRA and earn an average annual return of 10 percent, your account balance will be worth a figure in the region of 250,000 dollars after 20 years.

Discover More Details ›

How long to save $1 million in Roth IRA? ›

Assuming a 10% return on your investments, it would take around 29 years with the same $6,500 per year contribution. Becoming a Roth IRA millionaire will take time. It is much more likely that people will become retirement account millionaires, which means taking into account their 401(k) and traditional IRA balances.

Is there a 5 year rule for Roth IRA? ›

The Roth IRA five-year rule says you cannot withdraw earnings tax-free until it's been at least five years since you first contributed to a Roth IRA account. This five-year rule applies to everyone who contributes to a Roth IRA, whether they're 59 ½ or 105 years old.

View Details ›

What happens after 5 years in a Roth IRA? ›

Once the 5-year rule has been met, and the account owner is 59½ or older, they may make what's known as a qualified distribution of earnings exempt from both taxes and penalties. Note: The 5-year aging requirement applies to all Roth IRAs, even if the account holder is 59½ or older.

How much money do I need to invest to make $3,000 a month? ›

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

Read On ›

What happens if you invest $100 a month for 5 years? ›

You plan to invest $100 per month for five years and expect a 6% return. In this case, you would contribute $6,000 over your investment timeline. At the end of the term, your portfolio would be worth $6,949. With that, your portfolio would earn around $950 in returns during your five years of contributions.

Find Out More ›

How much will I have in 30 years if I invest $100 a month? ›

Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.

How to turn 100k into 1 million? ›

If you keep saving, you can get there even faster. If you invest just $500 per month into the fund on top of the initial $100,000, you'll get there in less than 20 years on average. Adding $1,000 per month will get you to $1 million within 17 years. There are a lot of great S&P 500 index funds.

Can I retire at 62 with 1 million dollars? ›

It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.

Get More Info ›

What is the 10 year Roth rule? ›

The SECURE Act requires the entire balance of the participant's inherited IRA account to be distributed or withdrawn within 10 years of the death of the original owner. However, there are exceptions to the 10-year rule, and spouses inheriting an IRA have a much broader range of options available to them.

View Details ›

How much does Roth IRA grow per year? ›

Historically, with a properly diversified portfolio, an investor can expect anywhere between 7% to 10% average annual returns. Time horizon, risk tolerance, and the overall mix are all important factors to consider when trying to project growth.

View Details ›

What is the average return for Roth IRA by year? ›

Over the ten-year period ending in 2019, Roth IRA accounts returned on average 8% to 10% per year. On average, 401(k) plans had an average annual return of 6.3% in 2020 compared to IRA's 7.3%. In 2019, the average Roth IRA contribution was $4,989, up 3% from 2018.

See Details ›

What is the average rate of return on a Roth IRA? ›

The average return rate for Roth IRA from the stock market since 1950 is around 11%. From 1926 to 2016, the average annual return on stocks, including dividends, was 10%. As per data, the average interest rate on a Roth IRA in 2021 was 1.60%.

See Details ›