Roth IRA Calculator:

Roth IRA Calculator

Annual Contribution ($): Number of Years: Expected Annual Return Rate (%):

 The Roth IRA Calculator: What Is It?  A financial tool called a “Roth IRA Calculator” can help you figure out how much money you might have in your Roth IRA when you retire.  Through the use of compound interest, it determines how your contributions increase over time.  What kind of data is required?  The calculator typically asks for the following information when attempting to determine the balance of your future Roth IRA: The amount of money you intend to invest in the Roth IRA annually is called the annual contribution.  Current Age: Your age at the moment.  Age of Retirement—The age at which you intend to retire.  The term "expected annual return" refers to the percentage of your investments' expected annual return (e.g., 6%, 7%, etc.). Current Roth IRA Balance: Any money in your Roth IRA that you already have.  How does it function? The calculator uses the compound interest formula: Future Worth = 𝑃

 ×

 (

 1

 +

 𝑟

 )

 𝑛

 +

 (

 𝐶

 ×

 (

 (

 1

 +

 𝑟

 )

 𝑛

 −

 1

 )

 𝑟

 )

 Value in the Future = P(1+r) n

 +(

 r

 C×((1+r)

 n

 −1)

 ​

 )

 Where:

 𝑃

 P represents the Roth IRA’s current balance.  𝐶

 C is the yearly contribution. 𝑟

 The expected annual return rate, which can be expressed as a decimal (for instance, 0.77%), is represented by r. n is the amount of time left until retirement.  What Will It Display to You?  The final product will include: The total amount of money you put into the account is called total contributions.  Total Growth/Earnings: The amount your money increased as a result of interest. Your final Roth IRA balance is the total amount you will have when you retire.