Retirement
Future value of contributions
Grow the current balance and the annual contributions to the retirement date.
The Formula
FV = balance x (1+r)^t + contribution x ((1+r)^t - 1) / r
Grow the current balance and the annual contributions to the retirement date.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| B | Current balance | currency | Existing Roth balance. |
| C | Annual contribution | currency | Amount added each year. |
| r | Annual return | rate | Expected compound return. |
| t | Years | count | Years until withdrawal. |
What Each Symbol Means
Bcurrency
Current balance
Existing Roth balance.
Ccurrency
Annual contribution
Amount added each year.
rrate
Annual return
Expected compound return.
tcount
Years
Years until withdrawal.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate roth ira growth page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Roth IRA Growth, filed under Finance. Every number the guide produces comes from substituting into this one line.