Estimate your future tax-free wealth at retirement.
Estimated Roth IRA Value
$0.00
Understanding Your Roth IRA Projection
A Roth IRA is one of the most powerful retirement savings tools available in the United States. Unlike a Traditional IRA, contributions to a Roth IRA are made with post-tax dollars, meaning you don't get a tax deduction today. However, the trade-off is significant: your investments grow tax-free, and qualified withdrawals in retirement are also 100% tax-free.
How This Calculator Works
This calculator uses the compound interest formula to determine the future value of your existing balance and your ongoing annual contributions. The formula applied is:
FV = P(1 + r)^n + PMT [((1 + r)^n – 1) / r]
P: Your current starting balance.
r: Your expected annual rate of return (divided by 100).
n: The number of years until retirement (Retirement Age – Current Age).
PMT: Your annual contribution amount.
Example Calculation
Let's say you are 25 years old and plan to retire at 65 (40 years of growth). You start with $1,000 and contribute $7,000 annually (the 2024 limit for those under 50). With an average market return of 8%:
Future value of initial $1,000: ~$21,724
Future value of annual $7,000: ~$1,813,383
Total at Retirement: $1,835,107
Because this is a Roth IRA, that entire 1.8 million dollars is yours to spend without paying a single cent in federal income tax, provided you follow IRS distribution rules.
Key Roth IRA Rules to Remember
Contribution Limits: For 2024, the limit is $7,000 ($8,000 if age 50 or older).
Income Limits: Your ability to contribute directly to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI).
The 5-Year Rule: To withdraw earnings tax-free, the account must have been open for at least five years, and you must be at least 59½ years old.
function calculateRothIRA() {
var currentAge = parseFloat(document.getElementById('roth_currentAge').value);
var retirementAge = parseFloat(document.getElementById('roth_retirementAge').value);
var startingBalance = parseFloat(document.getElementById('roth_startingBalance').value);
var annualContribution = parseFloat(document.getElementById('roth_annualContribution').value);
var returnRate = parseFloat(document.getElementById('roth_returnRate').value) / 100;
if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(startingBalance) || isNaN(annualContribution) || isNaN(returnRate)) {
alert("Please fill in all fields with valid numbers.");
return;
}
if (retirementAge <= currentAge) {
alert("Retirement age must be greater than current age.");
return;
}
var years = retirementAge – currentAge;
var totalValue = 0;
// Growth of initial balance
var fvInitial = startingBalance * Math.pow(1 + returnRate, years);
// Growth of annual contributions (Assuming end of year contributions)
var fvContributions = 0;
if (returnRate === 0) {
fvContributions = annualContribution * years;
} else {
fvContributions = annualContribution * ((Math.pow(1 + returnRate, years) – 1) / returnRate);
}
totalValue = fvInitial + fvContributions;
// Formatting results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
maximumFractionDigits: 0
});
var totalContributions = startingBalance + (annualContribution * years);
var totalEarnings = totalValue – totalContributions;
document.getElementById('roth_totalValue').innerText = formatter.format(totalValue);
document.getElementById('roth_summaryText').innerHTML = "In " + years + " years, you will have contributed a total of " + formatter.format(totalContributions) + ". Your account is projected to earn " + formatter.format(totalEarnings) + " in tax-free interest.";
document.getElementById('rothResultDisplay').style.display = 'block';
}