Roth IRA Calculator
Project your Roth IRA balance with after-tax contributions and tax-free growth to retirement. Quick and accurate.
After-tax money — no deduction now.
Balance at retirement
₹1,12,17,514
Growth
₹87,67,514
Over 300 months
After-tax contributions
₹24,00,000
Tax-free portion
78%
Of the final balance
Roth IRA withdrawals are tax-free in the US when held for 5 years and taken after age 59½. Contributions shown are after-tax. Returns compound monthly and are not guaranteed.
Last updated: July 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use this calculator to compare the two IRA flavours before committing: the Roth shows what after-tax money grows into when withdrawals are tax-free, while the IRA calculator models the pre-tax alternative. For NRIs the comparison matters even more, because Indian tax treatment of US retirement accounts can differ from the US rules, so the after-tax figures here are a planning baseline rather than a promise. The tool also helps set a realistic monthly number — many people overcommit and stop contributing within a year, and this calculator makes the monthly requirement explicit. Check the projection at retirement age to confirm the balance covers the gap between your expected expenses and any guaranteed income like EPF or a pension. Update inputs annually to keep the projection honest as your salary and savings capacity grow.
How to Use This Calculator
- Step 1: Enter the years until retirement — the standard assumption for a Roth held to retirement age.
- Step 2: Add your current Roth IRA balance. A rollover or earlier contributions belong here, not in the monthly field.
- Step 3: Enter your after-tax monthly contribution — the money you actually part with each month.
- Step 4: Set the expected return and read the tax-free balance at retirement, growth share, and after-tax total contributed.
Worked Example
Meera, 30, already has ₹1,00,000 in a Roth IRA and adds ₹8,000 monthly from her after-tax salary. Over 30 years at a 10% return, the balance reaches about ₹2.01 crore. Of that, ₹28.8 lakh is her own after-tax money and the remaining ₹1.71 crore is growth. Because Roth withdrawals in the US are tax-free after the holding rules, Meera can treat nearly the entire ₹2 crore as spendable retirement income, unlike a traditional IRA where taxes would reduce the usable amount.
Tips and Common Mistakes
- •Tip 1: Pay the tax today when your bracket is low — young earners often gain most from Roth treatment.
- •Tip 2: Contribute early in the year or in one lump sum to get extra months of compounding on the annual amount.
- •Tip 3: Keep the 5-year rule in mind: qualified withdrawals in the US require the account to be at least five years old.
- ✗Mistake 1: Avoid a Roth if your current Indian-side tax rate is far higher than your expected retirement rate — the deduction elsewhere may serve you better.
- ✗Mistake 2: Avoid exceeding US income limits for Roth eligibility; if you do, excess contributions attract a 6% excise tax until corrected.
Frequently Asked Questions
How is a Roth IRA different from a traditional IRA?
A Roth IRA is funded with after-tax money — no deduction now — but qualified withdrawals, including all the growth, are tax-free in the US. This makes it powerful for young investors who expect higher taxes later. The calculator's growth uses exactly the same compounding; the difference is purely tax treatment.
Is there an income limit for Roth IRA contributions?
Yes — US law phases out Roth contributions above certain income levels for single and joint filers, and married couples filing separately face a low threshold. Contributions are also capped annually (around US$7,000 for most people in recent years). This calculator does not enforce these limits.
Why show after-tax contributions?
Because the contribution amount you enter is post-tax money — you have already paid tax on it. The 'tax-free portion' card shows the share of the final balance that is growth, which is exactly the amount a Roth IRA lets you withdraw without US tax after the 5-year holding rule.
What happens if I move back to India?
A Roth IRA remains a US account; you can keep it and withdraw tax-free in the US after qualifying conditions, but you must report it under Indian tax rules. The US-India tax treaty governs how retirement account income is treated — check with a cross-border tax advisor.
Is there an Indian equivalent?
No direct equivalent exists, since Indian retirement products like PPF and NPS are tax-deferred rather than tax-free on withdrawal (NPS has a partial tax-free withdrawal). ELSS gives tax benefits but has a 3-year lock-in and is equity-based.
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