Roth IRA Calculator
Calculate your Roth IRA retirement savings with tax-free growth
Roth IRA Projection
Estimated Balance at Retirement
$1,165,677
Total Contributed
$255,000
Interest Earned
$910,677
Years to Retirement
35 years
Growth Projection
About This Calculator
What is a Roth IRA?
A Roth IRA is a retirement savings account that offers tax-free growth and tax-free withdrawals in retirement. Unlike traditional IRAs, you contribute after-tax dollars, but qualified withdrawals are completely tax-free.
Key Benefits:
- Tax-free withdrawals in retirement
- No required minimum distributions (RMDs) during your lifetime
- Can withdraw contributions (not earnings) anytime without penalty
- Ideal for younger investors expecting higher tax brackets in retirement
2024 Contribution Limits: $7,000 per year ($8,000 if age 50+). Income limits apply for eligibility.
Formula & Calculation Method
Roth IRA Growth Calculation
Future Value = PV(1+r)ⁿ + PMT × [((1+r)ⁿ - 1) / r]
Where:
- PV = Present Value (current balance)
- PMT = Monthly contribution
- r = Monthly interest rate (annual rate ÷ 12)
- n = Number of months until retirement
Example Calculation:
Age 30, retiring at 65, $10,000 current balance, $7,000 annual contribution, 7% return:
Future Value = $10,000 × (1.00583)⁴²⁰ + $583.33 × [((1.00583)⁴²⁰ - 1) / 0.00583]
= $1,165,677 at retirement
How to Use This Calculator
How to Use the Roth IRA Calculator
- Enter Current Age: Your current age.
- Set Retirement Age: Age when you plan to retire (typically 65).
- Current Balance: Your current Roth IRA balance.
- Annual Contribution: How much you plan to contribute annually (2024 limit: $7,000, or $8,000 if you are age 50 or older).
- Expected Return: Expected annual return rate (typically 6-8% for balanced portfolio).
- View Projections: See your estimated balance at retirement with detailed breakdown.
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Calculator by
Sarah Chen, CFA
CFA (Chartered Financial Analyst)MBA in Finance