Your Roth IRA Retirement Plan
return to homepage

Roth IRA Investment Calculator

Use this Roth IRA investment calculator to determine the rate of return you need to generate on your savings in order to meet your retirement goal.

To get the most accurate projections, experiment with different annual contributions, inflation rates, and/or retirement ages.

      Roth IRA Investment Calculator  
      Starting Balance $  
      Annual Contribution $  
      Desired Retirement $  
      Inflation Rate    
      Current Age    
      Retirement Age    
      Necessary Rate of Return    
      To Achieve Your Goal      


    How To Use The Roth IRA Investment Calculator

    Simply fill out the fields in the Roth IRA investment calculator featured above, using a value for each of the following items:

    • Starting Balance
    • Annual Contribution
    • Desired Retirement Balance
    • Inflation Rate
    • Current Age, and
    • Retirement Age

    Not sure what these terms mean? Not sure what numbers to put in?

    Use the section below as a guide for your Roth IRA investment calculations.

    Then, as you fill in each field with numbers customized to your situation, the calculator will automatically update to reveal the annual compound rate of return you need to generate in order to achieve your investing goals.

    Roth IRA Investment Calculator Terms

    Below is an explanation of each calculator term:

    Starting Balance
    This is the current balance in your Roth IRA (if you already have one). If you're still considering opening a Roth IRA, put zero in this field (since you don't have an existing balance).

    Need an example?

    Let's say, you already have $25,000 in your Roth IRA.

    If so, then put $25,000 in the "Starting Balance" field.

    Annual Contribution
    This is the amount you plan to contribute to your Roth IRA on an annual basis.

    For example, let's say you plan to contribute $250 per month to your Roth IRA. If so, then put $3,000 in the "Annual Contribution" field.

    The default for this field is set to $5,000 because that's the maximum contribution if you're under age 50.

    However, the maximum contribution is $6,000 for people age 50 and older. So if you're 50 or older and plan to make the maximum contribution, put $6,000 in the "Annual Contribution" field.

    If you're married, and both you and your spouse intend to make the maximum contribution, then input the appropriate amount in this field.

    For example, if both you and your spouse are over age 50 and eligible to contribute the maximum amount, then put $12,000 in the "Annual Contribution" field.

    Desired Retirement Balance
    This the amount of money you want to have in your Roth IRA when you retire.

    For instance, let's say you calculate that you'll need $1,000,000 when you retire in order to maintain your current standard of living.

    If so, then put $1,000,000 in the "Desired Retirement Balance" field.

    Inflation Rate
    This is the annual rate of inflation you project for the timeframe in which your Roth IRA savings is invested.

    It's important that you don't underestimate the rate of inflation since it will eat away at the purchasing power of your savings over time.

    The default rate is set at 4.1% - the approximate annual rate of inflation over the past seven decades.

    However, if you're more conservative, you might want to use a higher rate of inflation.

    Current Age
    This is fairly self-explanatory. Just check your birth certificate if you're not sure!

    Seriously, though, you might want to consider an older age for this field if you're not yet investing in your Roth IRA but plan to do so in the future.

    Retirement Age
    This is the age at which you'd like to retire, and while you'd probably like to make this the same as your current age, that may not be realistic... (although I hope I'm wrong!)

    Make sure you put a realistic age in the "Retirement Age" field in order to get the most accurate calculation of your inflation-adjusted Roth IRA savings.

    Necessary Rate of Return to Achieve Your Goal
    This is the annual compound rate of return you need to generate on your investments in order to achieve your retirement goal.

    The Roth IRA investment calculator automatically updates this value when you fill in the aforementioned fields.

    Unlike some Roth IRA calculators, your desired retirement balance is calculated in terms of today's dollars - meaning a million dollar retirement nest egg will retain the equivalent purchasing power of a million dollars today.

    Calculating Your Investment Plan

    Once you determine the annual compound rate of return you need to achieve in order to meet your retirement goal, then you can plan your investments accordingly.

    For instance, if you need a high rate of return, you most likely want to choose stocks over bonds for long term.

    But if you need a relatively low rate of return, you might choose the less volatile return offered by the bond market.

    Additional Roth IRA Calculators

    Roth IRA Calculator - This is our most basic Roth IRA calculator. Simply input the present value of your Roth IRA, along with your expected annual contributions, age, and rate of return, to get a projected value for your Roth IRA when you reach retirement age.

    Roth IRA vs. Traditional IRA Calculator - Use this calculator to determine which retirement account is best for you - a Roth IRA or a Traditional IRA. Discover why your current tax rate and expected future tax rate play a pivotal role in your decision.

    Roth IRA Contribution Calculator - Use this calculator to determine the dollar amount of the annual contribution you need to make in order to meet your desired Roth IRA retirement balance.

    Roth IRA Retirement Calculator - Use this calculator to estimate your annual inflation-adjusted income in retirement based on your Roth IRA starting balance, annual contributions, rate of return, and other variables.

    Check out our new Facebook Page and follow us on Twitter!

    Return to the top of Roth IRA Investment Calculator

    Return to Roth IRA Calculators

    Return to the Your Roth IRA Website Homepage

    What's New?

    Read 5 Reasons Why I Love My Roth IRA, our part in the Good Financial Cents Roth IRA Movement!

    Start planning ahead for next year by checking out 2017 Roth IRA contribution limits, and stay alert to this year's changes to the 2016 Roth IRA contribution limits.

    Our family fully funds our Roth IRA with this website. Learn how you can do it too.

    Are you confused or frustrated by the stock market? Learn how to build real wealth selecting individual stocks for your Roth IRA...

    Read more about what's new on the Roth IRA blog.

    Hi, I'm Britt, and this is my wife, Jen. Welcome to our Roth IRA information website!

    This is our humble attempt to turn a passion for personal finance into the Web's #1 resource for Roth IRA information. But, believe it or not, this site is more than just a hobby. It's a real business that provides a stable and steady stream of income for our family. In fact, because of this site, Jen is able to be a full-time stay-at-home mom and spend more time with our daughter, Samantha.

    But you want to know the best part? ...You can do the same thing! Anyone with a hobby or a passion (even with no previous experience building a website) can create a profitable site that generates extra income.

    If you're tired of solely depending on your job(s) for family income, click here now and learn why our income is increasing despite the financial crisis and how we're making our dreams come true.

    Search This Site

    Roth IRA Basics

    2016 Roth IRA Limits 2015 Roth IRA Limits 2014 Roth IRA Limits Roth IRA Rules Roth IRA Benefits Roth IRA Eligibility Roth IRA Income Limits Roth IRA Withdrawals Roth IRA Contribution Limits Open A Roth IRA

    Roth IRA Calculators

    More About Roth IRAs

    Roth IRA Limits Roth IRA Comparisons Roth IRA Penalties Roth IRA Accounts Roth IRA Taxes Roth IRA Contributions Roth IRA Distributions Roth IRA Investing Roth IRA Rollover Rules Roth IRA Conversions

    Roth IRA Resources

    Best Roth IRA Brokers Roth IRA Calculators Roth IRA Interviews Investing Books Investment Research Site Build It!

    About Your Roth IRA

    About Us Our Roth IRA

    Like Us On Facebook

    Follow Us On Twitter


    [?] Subscribe To
    This Site

    Add to Google
    Add to My Yahoo!
    Add to My MSN
    Add to Newsgator
    Subscribe with Bloglines


    The information contained in Your Roth IRA is for general information purposes only and does not constitute professional financial advice. Please contact an independent financial professional when seeking advice regarding your specific financial situation.

    For more information, please consult our full Disclaimer Policy as well as our Privacy Policy.

    Thank You

    Our family started this site as a labor of love in February 2009, a few months after our daughter was born.

    Thank you for helping it become one of the most visited Roth IRA information sites.

    Thank you, too, to the "SBI!" software that made it all possible.

    We hope you find what you're looking for and wish you much continued success in your retirement planning!

    Copyright© 2009-2015 Britt Gillette.