Free IRA growth calculator. Project how your Traditional or Roth IRA will grow with annual contributions of $7,000 (2025 limit), expected returns, and compound interest over time.
The IRA Growth Calculator projects how your Individual Retirement Account will grow over time with annual contributions and compound investment returns. For 2025, you can contribute up to $7,000 per year to an IRA ($8,000 if you're 50 or older). Whether you choose a Traditional or Roth IRA, the power of compound growth over decades is remarkable.
This calculator supports both Traditional and Roth IRA projections, showing the tax impact on your final after-tax wealth. Traditional IRAs offer a tax deduction now but are taxed at withdrawal; Roth IRAs offer no deduction but provide tax-free growth and withdrawals.
Enter your starting balance, annual contribution, expected return, years to grow, and IRA type to see your projected wealth. Seeing the long-term growth trajectory of your IRA helps you understand the true power of tax-deferred or tax-free compounding. Small adjustments in annual contributions or expected return rates compound dramatically over multiple decades.
Visualizing the growth trajectory of your IRA over decades demonstrates the power of consistent contributions and compound returns. This calculator helps you decide between Traditional and Roth, evaluate different contribution levels, and set realistic retirement expectations. Seeing projected balances at different contribution levels motivates consistent saving and informed allocation decisions.
For each year: Balance = (Previous Balance + Annual Contribution) × (1 + Return Rate) Traditional After-Tax = Final Balance × (1 − Withdrawal Tax Rate) Roth After-Tax = Final Balance (all tax-free if qualified)
Result: Projected Roth IRA balance: $780,574 (all tax-free)
Starting with $15,000 and contributing $7,000 annually at 7% return for 30 years produces approximately $780,574. In a Roth IRA, this entire amount is available tax-free in retirement. Your total contributions would be $225,000, meaning $555,574 (71%) is pure investment growth.
While both are retirement accounts, IRAs offer more investment choices (stocks, bonds, ETFs, mutual funds) compared to the limited menu in most 401(k) plans. IRA contribution limits are lower ($7,000 vs $23,500), but the flexibility and typically lower fees make IRAs an important complement to employer plans.
Contributing $7,000 per year for 30 years at 7% returns produces over $660,000 — from just $210,000 in contributions. That's 70% growth from compound returns alone. Starting 10 years earlier would mean over $1.4 million, demonstrating that time in the market is the most powerful factor.
Beyond tax-free withdrawals, Roth IRAs have several unique advantages: no Required Minimum Distributions (RMDs) at age 73, contributions can be withdrawn anytime penalty-free, and inherited Roth IRAs provide tax-free income to beneficiaries. These features make the Roth IRA one of the most versatile retirement planning tools.
The 2025 IRA contribution limit is $7,000 per person. If you're 50 or older, you can contribute an additional $1,000 catch-up, for a total of $8,000. This limit applies to the combined total of Traditional and Roth IRA contributions. You cannot contribute more than your earned income.
If you expect your tax rate to be lower in retirement (earning more now), Traditional is usually better. If you expect higher taxes in retirement (early career, expect income growth), Roth is usually better. Roth also offers more flexibility with penalty-free contribution withdrawals and no RMDs.
Yes, the IRA and 401(k) have separate contribution limits. However, if you have a 401(k) at work and earn above $83,000 (single) or $136,000 (MFJ for 2025), your Traditional IRA contributions may not be tax-deductible. You can still contribute to a Roth IRA (within income limits) or do a backdoor Roth.
This depends on your asset allocation. A 100% stock portfolio has historically returned about 10% annually (7% after inflation). A balanced 60/40 stock/bond portfolio averages about 7-8%. For IRA projections, 6-8% is a reasonable range for long-term planning.
For 2025, you can make a full Roth IRA contribution if your MAGI is under $150,000 (single) or $236,000 (MFJ). Contributions phase out between $150K-$165K (single) and $236K-$246K (MFJ). Above these limits, you can use the "backdoor Roth" strategy.
Early withdrawals from a Traditional IRA before 59½ incur income tax plus a 10% penalty (exceptions include first home purchase up to $10K, education expenses, and disability). Roth IRA contributions can be withdrawn anytime tax and penalty-free; only earnings are subject to penalties before 59½ and 5 years.