Use this free IRA calculator to estimate how much your retirement savings could grow over time. Enter your current balance, annual contribution, expected rate of return, and retirement age. The calculator shows your projected balance at retirement for both traditional IRA and Roth IRA accounts.
An individual retirement account (IRA) is a tax-advantaged way to save money for retirement. The two most common types are the traditional IRA and the Roth IRA. Each one handles taxes differently, and that difference changes how much you keep when you withdraw funds.
This calculator gives you a side-by-side estimate so you can compare both options in minutes.
IRA Calculator
The IRA calculator above uses a few key inputs to project your savings:
- Current age. Your starting point for the growth timeline.
- Retirement age. When you plan to start withdrawals. Many people target age 65, but you can adjust this.
- Current IRA balance. The amount already in your account.
- Annual contribution. How much you plan to add each year.
- Estimated rate of return. A reasonable assumption for long-term growth. A balanced portfolio has historically returned between 6% and 8% annually, though past performance (including benchmarks like the S&P 500 or Dow Jones Industrial Average) does not guarantee future results.
- Current and retirement tax brackets. These matter for comparing after-tax outcomes between Roth and traditional IRAs.
The calculator compounds your contributions and returns year by year, then shows an estimated balance at retirement and total return. Every result is an estimate based on the assumptions you enter, not a guarantee.
Traditional IRA Calculator
A traditional IRA lets you contribute pre-tax or tax-deductible dollars now. Your money grows tax-deferred, meaning you pay no income taxes on gains until you withdraw them.
This is helpful if you expect your income tax rate in retirement to be lower than it is today. You get a tax break now, when your rate is higher, and pay taxes later, when your rate may be lower.
How much will an IRA grow in 20 years? That depends on your contribution amount and rate of return. For example, contributing $7,000 per year at a 7% return for 20 years could grow to roughly $287,000 before taxes. The traditional IRA calculator section of this tool shows your projected pre-tax balance and estimates the tax impact at withdrawal.
Traditional IRA Withdrawal
When you withdraw money from a traditional IRA, the IRS treats it as ordinary income. You pay income taxes on the full amount at your tax bracket in that year.
You can begin penalty-free withdrawals at age 59½. Before that age, early withdrawals typically trigger a 10% penalty on top of regular income taxes. There are exceptions (disability, first-time home purchase, certain medical expenses), but the general rule is to wait until 59½.
At age 73, required minimum distributions (RMDs) kick in. The IRS requires you to start withdrawing a minimum amount each year, whether you need the money or not. This prevents indefinite tax deferral.
Traditional IRA Tax Deduction and Contribution Limits
One of the biggest draws of a traditional IRA is the tax deduction. If you (and your spouse, if applicable) are not covered by a workplace retirement plan, you can generally deduct contributions from your taxable income in full.
If you are covered by an employer plan, your deduction may be reduced or eliminated based on your modified adjusted gross income. The IRS publishes updated income thresholds each tax year.
2025 and 2026 contribution limits:
- Under age 50: $7,000 per year (2025). Check IRS guidance for the 2026 limit, as it may adjust for inflation.
- Age 50 or older: an additional catch-up contribution of $1,000, bringing the total to $8,000 (2025).
These limits apply across all your traditional and Roth IRAs combined. You cannot contribute $7,000 to each. The maximum contribution is a shared cap.
Roth IRA Calculator
A Roth IRA works in reverse compared to a traditional IRA. You contribute after-tax dollars, so there is no tax deduction up front. In exchange, your money grows tax-free, and qualified withdrawals in retirement are completely tax-free.
This Roth IRA calculator estimates your projected balance and shows how tax-free growth can compound over decades. Because you owe no taxes on qualified withdrawals, the number you see is closer to what you actually keep.
Wondering how much to put in a Roth IRA per month? Divide the annual limit by 12. At a $7,000 annual cap, that works out to about $583 per month. Contributing consistently, even smaller amounts, lets compound growth do the heavy lifting.
Roth IRA Tax-Free Growth and Withdrawal
Tax-free growth is the defining advantage of a Roth IRA. Every dollar of earnings inside the account stays yours, assuming you meet two conditions:
- The account has been open for at least five years.
- You are age 59½ or older when you withdraw.
Meet both conditions, and withdrawals of both contributions and earnings are completely free of income taxes. You also never face required minimum distributions during your lifetime. This makes Roth IRAs a flexible tool for estate planning and late-retirement spending.
Your original contributions (not earnings) can be withdrawn at any time, at any age, with no taxes or penalties. That gives you an emergency backstop, though using retirement savings early reduces your long-term balance at retirement.
Roth IRA Contribution Limits for 2026
Contributions to a Roth IRA are subject to both annual limits and income limits.
Annual limits (2025, with 2026 expected to be similar or slightly higher):
- Under age 50: $7,000
- Age 50 or older: $8,000 (includes the $1,000 catch-up contribution)
Income limits matter for Roth IRAs. Unlike traditional IRAs, your ability to contribute to a Roth IRA phases out at higher incomes.
For 2025 (2026 thresholds will be updated by the IRS):
- Single filers: phase-out begins around $150,000 modified adjusted gross income.
- Married filing jointly: phase-out begins around $236,000.
Above those ranges, the amount you can contribute shrinks and eventually reaches zero. If your gross income exceeds the limit, you may still be able to use a "backdoor Roth" strategy (contribute to a traditional IRA, then convert), but that involves additional tax rules. Consult a financial advisor or tax professional before attempting it.
Roth IRA vs Traditional IRA
The core difference comes down to when you pay taxes.
| Feature | Traditional IRA | Roth IRA |
|---|---|---|
| Tax break timing | Now (deduction on contributions) | Later (tax-free withdrawals) |
| Contributions | Pre-tax or tax-deductible | After-tax |
| Growth | Tax-deferred | Tax-free |
| Withdrawals in retirement | Taxed as ordinary income | Tax-free (if qualified) |
| RMDs | Required starting at age 73 | None during your lifetime |
| Income limits to contribute | No (but deduction may be limited) | Yes |
What should I consider when choosing an IRA type?
- Current vs. future tax bracket. If you expect your tax rate to drop in retirement, a traditional IRA's upfront deduction may save you more. If you expect higher taxes later, a Roth IRA locks in today's lower rate.
- Income level. High earners may be unable to contribute directly to a Roth IRA or may lose the traditional IRA deduction.
- Need for flexibility. Roth IRAs have no RMDs and allow contribution withdrawals at any time.
- Time horizon. Younger savers with decades of tax-free growth ahead often benefit more from a Roth IRA.
There is no universally correct answer. Many people hold both types of retirement account to diversify their tax exposure.
IRA Savings by Retirement Account Type
The difference in IRA savings between account types can be substantial over a long career. Consider two people, both age 30, both contributing $7,000 per year at a 7% return until age 65.
Both accounts reach the same pre-tax balance (roughly $1,030,000). But the traditional IRA balance will be reduced by income taxes at withdrawal. If the retiree is in a 22% tax bracket, the effective after-tax value drops to about $803,000. The Roth IRA holder keeps the full amount.
Of course, the traditional IRA contributor saved on taxes each year along the way. A fair comparison accounts for what they did with that annual tax savings. If they invested it separately, the gap narrows. This calculator helps you compare the net outcome based on your individual circumstances.
IRA Withdrawal Rules and Required Minimum Distributions
Both traditional and Roth IRAs share the age 59½ threshold for penalty-free access to earnings. Before that, expect a 10% early withdrawal penalty on top of any income taxes owed.
Required minimum distributions (RMDs):
Traditional IRAs require you to start taking distributions at age 73 under current tax laws (as updated by the SECURE 2.0 Act). The amount is calculated based on your account balance and an IRS life expectancy table.
Roth IRAs have no RMDs for the original account owner. This means your money can continue to grow tax-free as long as you live.
Missing an RMD or taking less than the required amount triggers a steep penalty (currently 25% of the shortfall, reduced to 10% if corrected promptly).
IRA Withdrawal Penalties and Individual Circumstances
Early withdrawals are generally penalized, but the IRS allows exceptions for specific situations:
- Disability. Permanent disability qualifies for penalty-free access.
- First-time home purchase. Up to $10,000 lifetime, penalty-free (both traditional and Roth).
- Qualified education expenses. Penalty waived, though taxes may still apply on traditional IRA withdrawals.
- Substantially equal periodic payments (SEPP/72t). A series of scheduled distributions before 59½ can avoid the penalty if done correctly.
- Unreimbursed medical expenses exceeding a percentage of your adjusted gross income.
These exceptions waive the 10% penalty only. With traditional IRAs, income tax still applies. With Roth IRAs, contributions come out first (tax and penalty-free), and only earnings face potential tax or penalty.
Every situation is different. This calculator provides estimates, not tax advice. If your withdrawal plans are complex, speak with a financial advisor or tax professional about your individual circumstances.
How This IRA Calculator Estimates Your Results
The calculator uses standard compound interest formulas with annual contributions. Here is what happens behind the scenes:
- It takes your current balance and adds your annual contribution each year.
- It applies your estimated rate of return to the growing balance, compounded annually.
- For traditional IRAs, it estimates your tax deduction based on your current tax bracket and projects taxes owed at withdrawal using your expected retirement tax bracket.
- For Roth IRAs, it shows the full balance as your after-tax amount, since qualified withdrawals are tax-free.
- It compares both scenarios side by side so you can see total return, tax savings, and estimated balance at retirement.
What this calculator does not do:
- It does not account for inflation, investment fees, or changes in contribution limits over time.
- It assumes a constant rate of return. Real markets fluctuate year to year.
- It does not model required minimum distributions or specific withdrawal schedules.
- It does not replace advice from a financial advisor, CPA, or tax professional.
Use your results as a planning starting point. Adjust the inputs to test different scenarios: What if you retire at 62 instead of 65? What if you contribute an extra $1,000 per year? Small changes in assumptions can significantly shift your projected balance.
This is a free financial calculator designed to help you estimate how much you can save for retirement. For personalized guidance based on current tax laws and your complete financial picture, consult a qualified professional.