How to use this IRA calculator
- Enter your Current age and Retirement age. The gap is how many years your money grows.
- Enter your Current IRA balance (0 if you are starting out) and your Annual contribution. For 2026 you can put up to $7,500 into all of your IRAs combined, or $8,600 at 50 or older.
- Set an Expected annual return. 7% is a common long-run figure for a mostly stock portfolio; use less for a cautious mix.
- Enter your Tax rate now and Tax rate in retirement to see which IRA type leaves you more to spend.
How the numbers are worked out
The balance uses the standard future value formula for a lump sum plus a deposit at the end of each year: balance × (1 + r)n + contribution × ((1 + r)n - 1) / r, where r is the yearly return and n the number of years. At a 0% return it is the balance plus contribution × years.
For the comparison, both accounts get the same slice of pre-tax pay. A Traditional contribution is deducted, so the whole amount goes in and is taxed when you take it out. With a Roth you pay tax first, so less goes in, but withdrawals are tax free. So the winner depends only on the two tax rates: when they are equal, the results are equal.
Worked example with the default numbers
A 35 year old with $10,000 in an IRA who adds $7,500 a year until 65 at 7% sees a projected balance of $784,578: the $10,000 starting balance, $225,000 of contributions and $549,578 of growth. In the comparison, $7,500 a year in a Traditional IRA grows to $708,456 and is worth $623,441 after 12% tax. A Roth gets $5,850 a year after 22% tax and grows to $552,596 tax free, so Traditional comes out $70,845 ahead.
Other 2026 rules and limits of this estimate
- If you have a workplace retirement plan, the Traditional IRA deduction phases out between $81,000 and $91,000 of income (single) or $129,000 and $149,000 (married filing jointly).
- Required minimum distributions from a Traditional IRA start at 73, or 75 if you were born in 1960 or later. Roth IRAs have none during the owner's lifetime.
- Returns are a smooth average, the contribution stays flat although the limit usually rises with inflation, tax is one flat rate, and results are in future dollars. Treat it as an estimate, not tax advice.
For a workplace plan with an employer match, use the 401(k) retirement calculator. To test growth on any other account, try the compound interest calculator, and to see when you could stop working, the early retirement calculator.
IRA questions people ask
What is the IRA contribution limit for 2026?
The limit is $7,500 across all of your Traditional and Roth IRAs combined, or $8,600 if you are 50 or older by the end of the year. You also cannot contribute more than your taxable pay for the year.
Is a Roth or Traditional IRA better?
A Roth usually wins if you expect a higher tax rate in retirement than today, and a Traditional IRA usually wins if you expect a lower one. When the rates are equal they come out the same, so other points decide, such as Roth IRAs having no required minimum distributions.
What are the Roth IRA income limits for 2026?
How much you can put into a Roth shrinks as your modified adjusted gross income rises from $153,000 to $168,000 if you are single or head of household, and from $242,000 to $252,000 if you are married filing jointly. Above the top of the range you cannot contribute directly.
Can I take money out of a Roth IRA early?
You can withdraw the money you contributed at any time without tax or penalty. Earnings are tax free only after age 59½ and once the account has been open five years; taking earnings out earlier can mean income tax plus a 10% penalty unless an exception applies.
Sources: IRS news release IR-2025-111 (2026 limits and income ranges), IRS: IRA contribution limits, IRS: required minimum distributions. Figures checked September 2026.