Traditional vs. Roth IRA Calculator
Compare after-tax retirement value: Traditional vs. Roth.
Enter your values
Enter the annual contribution in $.
Enter the years until retirement in years.
Enter the assumed annual return in %.
Enter the current marginal tax rate in %.
Enter the expected retirement tax rate 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.
- Traditional IRA (pre-tax growth)
- $613,995.11
- Traditional after-tax value at withdrawal
- $503,475.99
- Roth IRA after-tax value (tax-free withdrawal)
- $478,916.19
- Better choice
- Traditional IRA
Quick answer
If your tax rate is the same now and in retirement, Traditional and Roth produce identical after-tax outcomes; a Roth wins if your future tax rate is higher, and Traditional wins if it's lower.
Traditional after-tax FV = balance x (1 - future tax rate); Roth FV = balance already after-tax
At a glance
| What it does | Compare after-tax retirement value: Traditional vs. Roth. |
|---|---|
| Category | Finance |
| Inputs needed | Annual contribution, Years until retirement, Assumed annual return, Current marginal tax rate, Expected retirement tax rate |
| Main output | Traditional IRA (pre-tax growth) |
| Formula | Traditional after-tax FV = balance x (1 - future tax rate); Roth FV = balance already after-tax |
| Cost | Free — no sign-up, no download |
How to use the Traditional vs. Roth IRA Calculator
- 1Enter your annual contribution, years until retirement and assumed return.
- 2Enter your current tax rate and your expected tax rate in retirement.
- 3For a fair comparison, assume the same equivalent out-of-pocket cost for both.
Inputs explained
- Annual contribution($)
- Enter the annual contribution in $.
- Years until retirement(years)
- Enter the years until retirement in years.
- Assumed annual return(%)
- Enter the assumed annual return in %.
- Current marginal tax rate(%)
- Enter the current marginal tax rate in %.
- Expected retirement tax rate(%)
- Enter the expected retirement tax rate in %.
Worked example
Using the values the calculator loads with:
Inputs
- Annual contribution6500 $
- Years until retirement30 years
- Assumed annual return7 %
- Current marginal tax rate22 %
- Expected retirement tax rate18 %
Results
- Traditional IRA (pre-tax growth)$613,995.11
- Traditional after-tax value at withdrawal$503,475.99
- Roth IRA after-tax value (tax-free withdrawal)$478,916.19
- Better choiceTraditional IRA
Frequently asked questions
Why does the tax rate assumption matter so much?
Traditional accounts defer tax to withdrawal, while Roth accounts pay tax upfront — whichever rate is lower determines which account nets more.
Can I contribute to both?
Yes, subject to combined annual IRA contribution limits set by the IRS.
What do I need to enter into the Traditional vs. Roth IRA Calculator?
Just 5 values: annual contribution, years until retirement, assumed annual return, current marginal tax rate, expected retirement tax rate. 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 Traditional vs. Roth IRA Calculator work out the answer?
If your tax rate is the same now and in retirement, Traditional and Roth produce identical after-tax outcomes; a Roth wins if your future tax rate is higher, and Traditional wins if it's lower. It applies the formula Traditional after-tax FV = balance x (1 - future tax rate); Roth FV = balance already after-tax and shows the working so you can check each step by hand.
Is the Traditional vs. Roth IRA 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.