IRA Growth Calculator

Project how a Traditional or Roth IRA could grow over time using current annual contribution limits, your expected return, and your selected time horizon.

About the IRA Growth Calculator

The IRA Growth Calculator projects how an Individual Retirement Account could grow with recurring annual contributions and compound investment returns. For 2026, the standard IRA contribution limit is $7,500 and the age-50+ catch-up brings the total to $8,600. Whether you are comparing Traditional and Roth IRAs or simply checking a savings target, the main drivers are contribution level, return assumption, and time horizon.

This page supports both Traditional and Roth projections. Traditional IRAs may provide a deduction up front but are typically taxed at withdrawal; Roth IRAs usually do not provide a current deduction but qualified withdrawals are tax-free.

Enter your starting balance, annual contribution, expected return, years to grow, and IRA type to see the projected balance and an after-tax estimate. The page is a planning worksheet rather than a portfolio forecast and does not try to predict future contribution-limit changes or market volatility.

Why Use This IRA Growth Calculator?

Visualizing the long-term path of an IRA makes tradeoffs easier to see. This page helps you compare contribution levels, test return assumptions, and get a rough after-tax comparison between Traditional and Roth accounts.

How to Use This Calculator

  1. Enter your current IRA balance.
  2. Enter your planned annual contribution.
  3. Set your expected annual rate of return.
  4. Enter the number of years until retirement or planned withdrawal.
  5. Select Traditional or Roth IRA type.
  6. If Traditional, enter the tax rate you want to use at withdrawal.
  7. Review the projected growth and after-tax value.

Formula

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)

Example Calculation

Result: Projected Roth IRA balance: $872,232 (all tax-free)

Starting with $15,000 and contributing $7,500 per year at 7% for 30 years produces about $872,232. Total contributions would be $240,000, so roughly $632,232 of the ending balance would come from investment growth. In a Roth IRA, the page treats that final balance as tax-free if the distribution is qualified.

Tips & Best Practices

IRA vs 401(k): key differences

IRAs generally offer a wider investment menu than most workplace plans, but they also have lower annual contribution limits. For 2026, the standard IRA limit is $7,500 while the standard 401(k) employee deferral limit is $24,500. Many savers use an IRA as a supplement to, not a replacement for, an employer plan.

The compounding effect

Contributing $7,500 per year for 30 years at 7% grows to roughly $758,000 even when starting from zero. The total contributions would be $225,000, which means most of the ending balance would come from compounded investment growth rather than new deposits alone.

Traditional vs Roth after-tax planning

The difference between a Traditional and a Roth IRA is mostly about when tax is paid. This page applies the withdrawal tax rate you enter only to the final Traditional IRA balance, so it works best as a simple planning comparison rather than a full tax model.

Sources & Methodology

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Methodology

This page adds the entered annual contribution to the balance once per year and then applies the entered annual return to the updated balance. It repeats that process for the selected number of years. For Traditional IRA projections, it applies the user-entered withdrawal tax rate to the final balance to estimate an after-tax value. For Roth IRA projections, it leaves the final balance unchanged and assumes a qualified tax-free distribution.

The calculator does not cap the contribution you enter, does not model inflation, fees, sequence-of-returns risk, future contribution-limit changes, or required minimum distributions, and should be read as a planning worksheet rather than a forecast.

Sources

Frequently Asked Questions

What is the IRA contribution limit for 2026?

For 2026, the standard IRA contribution limit is $7,500. If you are age 50 or older, the catch-up contribution is $1,100, for a total of $8,600. The limit applies to the combined total of your Traditional and Roth IRA contributions, and you generally cannot contribute more than your earned income.

Should I choose a Traditional or Roth IRA?

That depends on when paying tax is more attractive. Traditional IRAs are often favored when you expect a lower tax rate later, while Roth IRAs are often favored when you expect a similar or higher future tax rate or value tax-free withdrawals more.

Can I contribute to both a 401(k) and an IRA?

Yes. IRAs and 401(k) plans have separate contribution limits. If you are covered by a workplace retirement plan, deduction of a Traditional IRA contribution may phase out at higher incomes, but the growth worksheet is still useful for comparing contribution levels and account types.

What is a realistic IRA return rate?

That depends on the investment mix. A stock-heavy portfolio can have higher long-run expected returns but more volatility, while a more conservative mix often has lower expected returns. This page is most useful when you test a range of scenarios instead of relying on one number.

What are the Roth IRA income limits?

For 2026, you can make a full Roth IRA contribution if your modified AGI is below $153,000 (single) or $242,000 (married filing jointly). Direct contributions phase out between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married filing jointly.

Can I withdraw from an IRA before age 59½?

Early withdrawal rules depend on the account type and the reason for the withdrawal. Traditional IRA withdrawals can trigger both income tax and penalty unless an exception applies. Roth IRA contribution withdrawals are usually more flexible than Roth earnings withdrawals.

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