What Is a Roth IRA and How Is It Calculated?
A Roth IRA is an individual retirement account funded with after-tax money, in which investment growth and qualified withdrawals are tax-free. The IRS caps annual contributions at $7,500 for 2026 ($8,600 if you are 50 or older) and phases out eligibility as modified adjusted gross income (MAGI) rises.
This Roth IRA calculator projects your balance with the standard future-value formula for a growing account with annual deposits: Balancen = Balancen−1 × (1 + r) + C, where r is the annual return, C is the yearly contribution, and n runs from 1 to the number of years until retirement. The inflation-adjusted figure divides the final balance by (1 + inflation)^years.
Roth IRAs were created by the Taxpayer Relief Act of 1997 and are named after Senator William Roth. To withdraw earnings tax-free, the account must be at least five years old and you must be 59½ or older, disabled, or using the first-time homebuyer exception (up to $10,000 lifetime).
How to Use This Roth IRA Calculator
Enter your details and the projection updates instantly:
- Current age and retirement age set how many years the money compounds. Age 50 or older adds the $1,100 catch-up to your limit.
- Current balance and annual contribution are your starting Roth IRA balance and what you plan to add each year.
- Annual return is your expected average growth. Long-run U.S. stock market returns have averaged roughly 10% nominal, so 6% to 8% is a common planning range after fees and a mixed portfolio.
- Filing status and MAGI determine how much you may contribute directly. If you are inside the phase-out range, the calculator reduces your allowed amount using the IRS formula and caps the projection at that amount.
The tool uses U.S. tax rules and your currency setting for display only. Roth-style accounts exist elsewhere (such as the UK Stocks & Shares ISA or Canada's TFSA), but their limits differ.
Roth IRA Income Limits for 2026
According to IRS Notice 2025-67, eligibility to contribute phases out at these MAGI levels. Below the lower figure you can contribute the full limit; above the upper figure you cannot contribute directly.
| Filing status | Phase-out begins | No direct contribution |
|---|---|---|
| Single / Head of household | $153,000 | $168,000 and above |
| Married filing jointly | $242,000 | $252,000 and above |
| Married filing separately | $0 | $10,000 and above |
Within the range, the reduced limit is the full limit × (upper threshold − MAGI) ÷ range width, rounded up to the next $10, with a $200 minimum while any room remains (IRS Publication 590-A). High earners over the limit can still use a backdoor Roth conversion, which is worth discussing with a tax professional.
Frequently Asked Questions
What is the Roth IRA contribution limit for 2026?
For 2026 the IRS limit is $7,500 for savers under 50 and $8,600 for those 50 or older, which includes a $1,100 catch-up. The limit applies across all your Roth and traditional IRAs combined, and it cannot exceed your taxable compensation for the year.
What are the Roth IRA income limits for 2026?
For 2026, the contribution phase-out is $153,000 to $168,000 of modified AGI for single and head of household filers, and $242,000 to $252,000 for married couples filing jointly. Married filing separately is phased out between $0 and $10,000 if you lived with your spouse.
How accurate is this Roth IRA calculator?
The math is exact for the inputs you enter, but the result is only as realistic as your assumed return and inflation rate. It applies a constant return, adds contributions at the end of each year, and holds the 2026 limits fixed even though the IRS adjusts them over time.
What is the difference between a Roth IRA and a traditional IRA?
Roth IRA contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free. Traditional IRA contributions may be tax-deductible now, but withdrawals are taxed as ordinary income. A Roth also has no required minimum distributions during the owner's lifetime.