Savings
Compound interest: Roth IRA
How money grows in a Roth IRA, with realistic rate assumptions and key context.
Typical parameters
| Parameter | Value |
|---|
| Typical annual rate | 7% |
| Compounding frequency | annual |
| 10-year growth on $10,000 | $19,672 |
| 30-year growth on $10,000 | $76,123 |
A Roth IRA is an individual retirement account funded with after-tax dollars. Qualified withdrawals in retirement are completely tax-free — including all the growth. Contribution limits and income phase-outs are adjusted by the IRS (2024: $7,000, or $8,000 if 50+; phase-out for singles starts around $146,000 and for married couples around $230,000 MAGI) — check irs.gov for current-year figures. The tax-free growth is especially valuable for young investors with long time horizons.
Best use: Best for: young investors expecting to be in a higher tax bracket in retirement. Tax-free growth over 30-40 years is an enormous advantage.
Open pre-filled calculator →
See Roth IRA growth on your numbers
Pre-filled with typical rates — adjust to your actual situation.