Roth IRA ROI Calculator
Calculate the total and annualized return on investment (ROI) of your Roth IRA, plus the tax you avoided by growing that money inside a Roth.
ROI Parameters
Define your investment scenario
Calculating...
How the ROI Calculation Works
The calculator compares what your account is worth today with the total amount you have put into it. The difference is your gain, and dividing it by what you invested gives your total ROI.
It then converts that total into an annualized rate over the years invested, so you can compare your Roth IRA with benchmarks that report yearly returns.
Enter every dollar deposited
Put all contributions, including your opening deposit, in Total Contributions Made. This is the base ROI is measured against.
Enter today’s value and time
Use the current market value from your statement and the number of years since you started.
Add a comparison tax rate
This estimates what the same gain would have cost in taxes in a regular brokerage account.
What Is the ROI Formula?
Total ROI measures overall gain. Annualized ROI, also called compound annual growth rate (CAGR), spreads that gain evenly across the years.
- V : Current value
- What your Roth IRA is worth today.
- C : Total contributions
- Every dollar you have deposited into the account.
- n : Years invested
- Time since your first contribution.
- T : Equivalent tax rate
- The rate your gain would have been taxed at outside a Roth.
The annualized figure treats all contributions as if they were invested on day one. If you added money gradually, your true time weighted return is higher than this estimate.
Total ROI to Annualized Return Conversion
A big total ROI can hide a modest yearly return. Find your total ROI on the left and your years invested across the top to see the equivalent annual rate.
| Total ROI | 5 years | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|---|
| 25% | 4.56% | 2.26% | 1.50% | 1.12% | 0.75% |
| 50% | 8.45% | 4.14% | 2.74% | 2.05% | 1.36% |
| 100% | 14.87% | 7.18% | 4.73% | 3.53% | 2.34% |
| 150% | 20.11% | 9.60% | 6.30% | 4.69% | 3.10% |
| 200% | 24.57% | 11.61% | 7.60% | 5.65% | 3.73% |
| 300% | 31.95% | 14.87% | 9.68% | 7.18% | 4.73% |
A 100% ROI means your money doubled; over 10 years that equals about 7.2% a year.
Example: $50,000 Grown to $75,000 in 10 Years
This uses the calculator’s default values for someone who has contributed $50,000 in total over a decade.
- 1Gain: $75,000 minus $50,000 = $25,000.
- 2Total ROI: $25,000 ÷ $50,000 = 50.0%.
- 3Annualized ROI: ($75,000 ÷ $50,000)1/10 minus 1 = 4.14% a year.
- 4Tax adjusted advantage: $25,000 × 22% = $5,500.
FAQs
A diversified stock portfolio has historically averaged roughly 7 to 10% a year, while balanced portfolios usually return less.
Enter every dollar you have deposited, including your opening deposit, because ROI is measured against that total.
Annualized ROI accounts for compounding, so each year’s gain builds on earlier gains instead of adding in a straight line.
No, it treats all contributions as invested on day one, so it can understate the return on money added gradually.
It is your total gain multiplied by your equivalent tax rate, the tax a regular account could have owed on the same gain.
Your brokerage statement shows the current value, and IRS Form 5498 reports the contributions made for each year.
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