Ira Roth Calculator

How to Use the Roth IRA Calculator

Step 1: Enter Your Personal Information

Begin by filling in your personal details to help the calculator determine your financial needs for retirement.

• Current Age:
  Enter your present age in the ‘Current Age’ field. Ensure that it is a number between 18 and 100, as values outside of this range are not accepted.
• Retirement Age:
  Specify the age at which you plan to retire. This must be a number between 59 and 100.

Step 2: Provide Your Financial Details

The next step is to input financial information related to your Roth IRA account and assumptions for future rates of return and inflation.

• Current Roth IRA Balance:
  Input your current Roth IRA balance in dollars. The minimum value you can enter is $0.
• Annual Contribution:
  Specify how much you intend to contribute to your Roth IRA each year. The amount should be between $0 and $7,000.
• Expected Annual Return (%):
  Provide the percentage rate you expect your investments to yield annually. This value can range from 0% to 30%.
• Expected Inflation Rate (%):
  Indicate the rate of inflation you anticipate, with possible values from 0% to 20%.

Step 3: Understanding the Results

Once all fields are filled accurately, the calculator will compute and display several results that give insights into your retirement savings.

• Years Until Retirement:
  This shows the number of years from your current age until your planned retirement age.
• Total Contributions:
  This calculates the total amount you will have contributed to your Roth IRA by the time you retire.
• Account Value at Retirement:
  This estimates the total value of your Roth IRA account at retirement, considering your current balance and expected annual return.
• Inflation-Adjusted Value:
  This reflects the purchasing power of your retirement account when adjusted for expected inflation rates, providing a more realistic idea of its future value.
• Total Investment Earnings:
  This calculates the net earnings on your investments by subtracting the total contributions and current balance from the total retirement account value.
• Return on Investment:
  This indicates the percentage return on your total investment in the Roth IRA account over time.

By following these steps, you can efficiently use the Roth IRA Calculator to forecast your retirement savings and evaluate your investment strategy.