Roth IRA Calculator 2025 β Tax-Free Growth & Income Limits
Calculate your Roth IRA tax-free growth, check 2025 income eligibility limits, and compare Roth vs Traditional IRA benefits.
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2025 limit: $7,000 (under 50) %
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Tax-Free Balance at Retirement
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Total Contributions
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Tax-Free Growth
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Contribution Eligibility
Roth IRA Summary
How to Use This Roth IRA Calculator
Enter your annual contribution (up to the 2025 limit), your current and retirement ages, and expected investment return. Your income (MAGI) and filing status determine whether you can contribute the full amount or a reduced/zero amount due to phase-out rules.
The Formula
Future Value = Contribution Γ [((1 + r)^n β 1) / r]
where r = annual return rate, n = years until retirement
Phase-out reduction = Contribution Γ [(MAGI β Phase-out Start) / Phase-out Range]
Tax Savings at Withdrawal = Balance Γ Your Retirement Tax Rate
where r = annual return rate, n = years until retirement
Phase-out reduction = Contribution Γ [(MAGI β Phase-out Start) / Phase-out Range]
Tax Savings at Withdrawal = Balance Γ Your Retirement Tax Rate
Example
Jane, 35, single, contributes $7,000/year at 7% return, retires at 65:
Years of growth: 30
Future Value: $7,000 Γ [((1.07)^30 β 1) / 0.07] = $7,000 Γ 94.46 = $661,226
Total contributions: $7,000 Γ 30 = $210,000
Tax-free growth: $451,226 β all withdrawn tax-free in retirement!
Years of growth: 30
Future Value: $7,000 Γ [((1.07)^30 β 1) / 0.07] = $7,000 Γ 94.46 = $661,226
Total contributions: $7,000 Γ 30 = $210,000
Tax-free growth: $451,226 β all withdrawn tax-free in retirement!
Extended
Roth vs Traditional IRA Comparison
Side-by-side comparison of after-tax wealth at retirement under both strategies
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Roth vs Traditional IRA β After-Tax Wealth Comparison
| Metric | Roth IRA | Traditional IRA | Winner |
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Frequently Asked Questions
What is the Roth IRA contribution limit for 2025?
The 2025 Roth IRA contribution limit is $7,000 for individuals under age 50, and $8,000 for those 50 and older (the extra $1,000 is the catch-up contribution). You can contribute to both a Roth IRA and a traditional IRA in the same year, but the combined total cannot exceed the annual limit.
What are the Roth IRA income limits for 2025?
For 2025, single filers can contribute the full amount if their MAGI is under $150,000, with a phase-out between $150,000 and $165,000. Married filing jointly filers phase out between $236,000 and $246,000. Above these limits, you cannot contribute directly to a Roth IRA (though a backdoor Roth conversion may be available).
When can I withdraw from a Roth IRA tax-free?
Roth IRA contributions can be withdrawn at any time tax- and penalty-free. Earnings are tax-free after age 59Β½ as long as the account has been open for at least 5 years (the 5-year rule). Early withdrawal of earnings may be subject to income tax and a 10% penalty.
Is a Roth IRA better than a traditional IRA?
Roth is better if you expect higher taxes in retirement. Traditional is better if you want the deduction now. Roth also has no required minimum distributions during your lifetime, making it ideal for estate planning. The right choice depends on your current vs future tax rates and when you need the money.
What is the backdoor Roth IRA?
If your income exceeds the Roth IRA limits, you can use the backdoor Roth: contribute to a non-deductible traditional IRA, then convert it to a Roth IRA. This strategy is legal but has tax implications if you have other pre-tax IRA funds (the pro-rata rule).