Roth Calculator

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Roth IRA Growth Calculator
Future Roth IRA BalanceAnnual Contribution to Reach a Goal
Results:
Please enter details and click Calculate.

Total Future Value: $0.00

Total Contributions: $0.00

Total Tax-Free Growth: $0.00

function calculateRoth(){var type=document.getElementById('calc_type').value;var age=parseFloat(document.getElementById('current_age').value);var retAge=parseFloat(document.getElementById('retirement_age').value);var start=parseFloat(document.getElementById('starting_balance').value);var annual=parseFloat(document.getElementById('annual_contribution').value);var rate=parseFloat(document.getElementById('annual_return').value)/100;if(isNaN(age)||isNaN(retAge)||isNaN(start)||isNaN(annual)||isNaN(rate)){alert('Please fill in all fields with valid numbers');return;}var n=retAge-age;if(n<=0){alert('Retirement age must be greater than current age');return;}if(type==='future_balance'){var fv_start=start*Math.pow(1+rate,n);var fv_annuity=0;if(rate===0){fv_annuity=annual*n;}else{fv_annuity=annual*((Math.pow(1+rate,n)-1)/rate);}var totalFV=fv_start+fv_annuity;var totalContrib=start+(annual*n);var growth=totalFV-totalContrib;document.getElementById('summaryText').innerHTML='Projected Roth Balance at Age '+retAge+': $'+totalFV.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('fv_res').innerHTML='$'+totalFV.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('tc_res').innerHTML='$'+totalContrib.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('tg_res').innerHTML='$'+growth.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('detailedResults').style.display='block';}else{var goal=annual;var fv_start_comp=start*Math.pow(1+rate,n);var remaining=goal-fv_start_comp;var reqAnn=0;if(rate===0){reqAnn=remaining/n;}else{reqAnn=remaining/( (Math.pow(1+rate,n)-1)/rate );}document.getElementById('summaryText').innerHTML='Required Annual Contribution: $'+reqAnn.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('detailedResults').style.display='none';}}

How to Use the Roth Calculator

The **roth calculator** is designed to help you project the future value of your Roth Individual Retirement Account (IRA) based on your current savings and future contributions. Unlike a traditional IRA, contributions to a Roth IRA are made with after-tax dollars, meaning your withdrawals in retirement are typically tax-free. This tool helps you visualize the power of compound interest when taxes are removed from the equation.

To get started, enter your current financial data into the fields below:

Current and Retirement Age
The number of years your money has to grow. The longer the timeframe, the more significant the compounding effect.
Current Balance
The amount of money currently in your Roth IRA. If you haven't opened one yet, you can enter 0.
Annual Contribution
The total amount you plan to deposit each year. Note that the IRS sets annual limits (e.g., $7,000 for 2024 for those under 50).
Expected Annual Return
The average annual growth rate you expect from your investments. Historically, the S&P 500 has averaged around 7-10% annually before inflation.

How It Works: The Math of Roth Growth

This **roth calculator** uses two primary financial formulas: the future value of a single sum (your starting balance) and the future value of an ordinary annuity (your annual contributions). The total future value is the sum of both.

Future Value = P(1 + r)n + PMT × [((1 + r)n – 1) / r]

  • P: Starting balance (Principal)
  • r: Annual interest rate (as a decimal)
  • n: Number of years until retirement
  • PMT: Annual contribution amount

The most powerful aspect of the Roth IRA is that the entire "Growth" portion shown in the results is yours to keep without sharing any with the government, provided you follow the qualified withdrawal rules.

Calculation Example

Scenario: Let's look at Sarah, a 25-year-old professional who wants to maximize her retirement savings early.

Sarah's Inputs:

  • Current Age: 25
  • Retirement Age: 65 (n = 40 years)
  • Starting Balance: $2,000
  • Annual Contribution: $7,000
  • Expected Return: 8% (r = 0.08)

Step-by-step solution:

  1. Growth of starting balance: $2,000 × (1.08)40 = $43,449.04
  2. Growth of annual contributions: $7,000 × [(1.0840 – 1) / 0.08] = $1,813,388.58
  3. Total Future Balance: $43,449.04 + $1,813,388.58 = $1,856,837.62
  4. Total Invested: $2,000 + ($7,000 × 40) = $282,000
  5. Total Tax-Free Earnings: $1,574,837.62

Common Roth IRA Questions

What are the 2024 contribution limits?

For 2024, the contribution limit for a Roth IRA is $7,000 if you are under age 50. If you are 50 or older, you can make a "catch-up" contribution of an additional $1,000, bringing your total limit to $8,000. These figures are often updated annually by the IRS to account for inflation.

Are there income limits for a Roth IRA?

Yes, Roth IRAs have income phase-out ranges. For 2024, if you are a single filer, your ability to contribute starts to phase out at a Modified Adjusted Gross Income (MAGI) of $146,000 and you cannot contribute if your income exceeds $161,000. For married couples filing jointly, the phase-out range is $230,000 to $240,000.

When can I withdraw my money tax-free?

To enjoy tax-free withdrawals of your earnings, you must meet the "five-year rule" (the account must have been open for at least five years) and you must be at least age 59½. However, you can withdraw your **contributions** (the principal you put in) at any time without taxes or penalties, as that money was already taxed before it went into the account.

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