Roth IRA Calculator

About the Roth IRA Calculator

A Roth IRA is a powerful retirement savings account that allows your investments to grow tax-free. Unlike a traditional IRA or 401k, your qualified withdrawals in retirement are not taxed, providing a significant advantage. This calculator helps you project how your Roth IRA can grow over time.

How it Works

The calculator uses several key inputs to forecast your Roth IRA's future value:

• Current Age & Retirement Age: This sets your investment timeline, which is the number of years your money has to grow tax-free.
• Current Savings: The amount you already have in your Roth IRA.
• Monthly Contribution: The amount you plan to contribute to your Roth IRA each month. Be mindful of the annual contribution limits set by the IRS.
• Annual Return Rate: The estimated average annual growth of your investments. This is a long-term average, as market returns will vary year to year.
• Inflation Rate: An estimate for the annual rate of inflation, which helps calculate the future purchasing power of your savings in today's dollars.

The calculator will show you your estimated Roth IRA balance at retirement and its value adjusted for inflation. Use this tool to experiment with different contribution strategies and see how consistent savings can lead to substantial tax-free wealth in retirement.