IRA Calculator

Calculate your Individual Retirement Account (IRA) growth for Traditional or Roth IRA based on your contributions and expected returns.

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Our free IRA calculator projects how your Traditional or Roth IRA balance will grow over time based on your current age, retirement age, existing balance, annual contributions, and expected rate of return. It also estimates tax savings for Traditional IRAs and shows your after-tax balance at retirement, so you can compare which account type may work better for your situation.

How IRA Growth Is Calculated

Future Balance = compound growth of your starting balance plus monthly contributions, applied over the years until retirement, using your expected annual return divided into a monthly rate.

For a Traditional IRA, contributions are typically tax-deductible today (creating a tax saving equal to your contribution amount × your current tax rate), but withdrawals in retirement are taxed as ordinary income. For a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free.

This calculator applies annual IRS contribution limits ($7,000 under age 50, $8,000 for age 50+, based on current limits) so your projection stays realistic.

How to Use This Calculator

  1. Choose Traditional IRA or Roth IRA
  2. Enter your current age and planned retirement age
  3. Enter your current IRA balance and planned annual contribution
  4. Enter your expected annual rate of return
  5. For Traditional IRA, enter your current and expected retirement tax rate
  6. Click Calculate to see your projected balance, growth, and tax impact

Frequently Asked Questions

What's the difference between a Traditional and Roth IRA?

A Traditional IRA gives you a tax deduction on contributions now, but you pay income tax when you withdraw funds in retirement. A Roth IRA offers no upfront deduction, but qualified withdrawals in retirement, including all growth, are completely tax-free.

What is the IRA contribution limit?

For 2024 and 2025, the annual IRA contribution limit is $7,000 for individuals under 50, and $8,000 for those 50 and older (which includes a $1,000 catch-up contribution), across Traditional and Roth IRAs combined.

Can I contribute to both a Traditional and Roth IRA in the same year?

Yes, but your combined contributions across both accounts cannot exceed the annual IRA limit. Roth IRA contributions are also subject to income limits that phase out eligibility at higher incomes.

Which is better for retirement, Traditional or Roth IRA?

It largely depends on whether you expect to be in a higher or lower tax bracket in retirement. If you expect a lower tax bracket in retirement, a Traditional IRA's upfront deduction may be more valuable. If you expect a similar or higher tax bracket, a Roth IRA's tax-free withdrawals often come out ahead.