As a U.S. citizen, you want to take advantage of tax-free retirement income.
You can use our Roth IRA calculator to calculate the potential of a Roth IRA accounts.
Please enter the following values and click the "Calculate" button. You will be shown the result of investing a taxable account and a Roth IRA account.
It will also show how much tax you would have to pay over the years with a taxable account.
Enter Your Investment Information
Initial investment ($):
Additional payment yearly ($):
Add. payments increase annually by (%):
Expected annual rate of return (%):
Age of retirement:
Marginal tax rate (%):
Calculation: This calculator shows how much a potential investment with and without a tax liability (Roth IRA) could earn,
based on your expected average annual rate of return with monthly or annual compounding, depending on the frequency of your contributions. Our calculator assumes you make your contribution at the beginning of each period.
The value "Additional payments increase annually by (%)" is the percentage by which the additional payments are increased annually. This is a good way to compensate for inflation.
If you would like to know what the average stock market returns have been in recent years, you can get an analysis of these developments in our article "Stock Market Returns And Duration Of Crises".
Taxable Account TAX PAYED:
Taxable Account Earnings:
Roth IRA Earnings:
Taxable Account Total:
Roth IRA Total:
Roth IRA vs. Taxable Account:
Initial: Amount with which the investment is started.
Past Savings: Any additional monthly or annual payments.
Period Savings: The actual additional monthly or annual payment.
Taxable Account Earnings: Income from the expected average annual return on the taxable account.
Additional Roth IRA Earnings: Income from the expected average annual return on the Roth IRA account.
Disclaimer: Please bear in mind that this calculator gives approximated numbers. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are not exhaustive despite our best effort.
For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive useful feedback and advice.
Successful implementation of the investment plan
In order to create an investment plan, realistic goals and calculations are necessary.
Implementation is another important area of investing. The total cost of buying and selling stocks, ETFs or mutual funds is important. Costs should not exceed 0.5% of your portfolio. Always remember that costs must be subtracted from an average return. You can easily simulate with our Investment Calculator how the final result will change if you reduce the Expected annual rate of return by a few percentage points.
For this reason, you need a broker that offers a professional service and has a low total cost structure.
In our "Broker" section you will find our broker reviews.