The Roth IRA Calculator projects how a Roth IRA will grow between today and your retirement age. Contributions are after-tax, but qualified withdrawals are typically tax-free, making projections especially useful for long-horizon planning. The tool also shows an inflation-adjusted value so you can interpret the result in today’s purchasing power.
How to Use Roth IRA Calculator
- Enter your current age and planned retirement age.
- Provide your current Roth IRA balance and annual contribution amount.
- Pick the contribution frequency (annual or monthly).
- Set the expected annual return and inflation rate.
- Review projected balance, total contributions, growth, and inflation-adjusted value.
Formula & Theory - Roth IRA Calculator
FV = PV × (1+r)^n + C × ((1+r)^n - 1) / r // annual contributions
FV_monthly = PV × (1+r)^n + (C/12) × ((1+m)^(12n) - 1)/m // monthly contributions, m = (1+r)^(1/12) - 1
Real_FV = FV / (1 + inflation)^n
Use Cases for Roth IRA Calculator
- Plan long-term Roth IRA savings goals.
- Compare contribution amounts and timeframes.
- Understand the trade-off between Roth and Traditional IRA growth.
- Show clients the impact of inflation on retirement savings.