Retirement
Tax-free growth
The portion of the final balance that is investment growth, withdrawn tax free.
The Formula
Growth = FV - balance - total contributions
The portion of the final balance that is investment growth, withdrawn tax free.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| FV | Future value | currency | Projected balance at retirement. |
What Each Symbol Means
FVcurrency
Future value
Projected balance at retirement.
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.