Roth vs Traditional Calculator
Which retirement account leaves you more after tax.
Enter your values
Enter the annual contribution in $.
Enter the years until retirement you are working with.
Enter the expected annual return in %.
Enter the tax rate today in %.
Enter the tax rate in retirement in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Roth after-tax value
- $442,743.26
- Traditional after-tax value
- $363,049.48
- Traditional plus invested tax saving
- $453,369.10
- Better choice
- Traditional
- Difference
- $10,625.84
- Tax saved today with traditional
- $42,000.00
Quick answer
Roth wins when your retirement tax rate is higher than today's; traditional wins when it is lower. Identical rates produce identical after-tax outcomes.
Roth = C × (1+r)^n ; Traditional = C × (1+r)^n × (1 − tax_ret)
At a glance
| What it does | Which retirement account leaves you more after tax. |
|---|---|
| Category | Finance |
| Inputs needed | Annual contribution, Years until retirement, Expected annual return, Tax rate today, Tax rate in retirement |
| Main output | Roth after-tax value |
| Formula | Roth = C × (1+r)^n ; Traditional = C × (1+r)^n × (1 − tax_ret) |
| Cost | Free — no sign-up, no download |
How to use the Roth vs Traditional Calculator
- 1Enter your annual contribution and years to retirement.
- 2Enter the return you expect on the account.
- 3Set your tax rate today and your best guess for retirement.
Inputs explained
- Annual contribution($)
- Enter the annual contribution in $.
- Years until retirement
- Enter the years until retirement you are working with.
- Expected annual return(%)
- Enter the expected annual return in %.
- Tax rate today(%)
- Enter the tax rate today in %.
- Tax rate in retirement(%)
- Enter the tax rate in retirement in %.
Worked example
Using the values the calculator loads with:
Inputs
- Annual contribution7000 $
- Years until retirement25
- Expected annual return7 %
- Tax rate today24 %
- Tax rate in retirement18 %
Results
- Roth after-tax value$442,743.26
- Traditional after-tax value$363,049.48
- Traditional plus invested tax saving$453,369.10
- Better choiceTraditional
- Difference$10,625.84
- Tax saved today with traditional$42,000.00
Frequently asked questions
Which should I pick if rates are equal?
They are mathematically identical, so pick on flexibility: Roth has no required distributions and contributions can be withdrawn penalty-free.
Why does the traditional option get a side investment?
A pre-tax contribution frees up cash today. To compare fairly, that tax saving must be invested too — otherwise the comparison flatters Roth.
What do I need to enter into the Roth vs Traditional Calculator?
Just 5 values: annual contribution, years until retirement, expected annual return, tax rate today, tax rate in retirement. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Roth vs Traditional Calculator work out the answer?
Roth wins when your retirement tax rate is higher than today's; traditional wins when it is lower. Identical rates produce identical after-tax outcomes. It applies the formula Roth = C × (1+r)^n ; Traditional = C × (1+r)^n × (1 − tax_ret) and shows the working so you can check each step by hand.
Is the Roth vs Traditional Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.