Retirement & Planning

Roth 403(b) vs. Traditional 403(b) Calculator

Use this calculator to determine which 403(b) contribution type might be right for you

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Better after-tax outcome Roth 403(b) by $222,361 on equal contributions
Roth 403(b) (tax-free) $1,010,730
Pre-tax balance $1,010,730
Pre-tax after tax $788,370
Difference $222,361
After-tax retirement value
After-tax retirement value Roth: $1.0MPre-tax (after tax): $788k
  • Roth $1.0M
  • Pre-tax (after tax) $788k
After-tax value Roth 403(b) (tax-free)Pre-tax (after tax)
After-tax value: Roth 403(b) (tax-free) vs Pre-tax (after tax) $1.8M$1.3M$900k$450k$0 Yr 1Yr 6Yr 11Yr 16Yr 21Yr 26

On equal contributions, the Roth 403(b) wins when your retirement tax rate (22%) is at or above today's (24%). Pre-tax wins if you invest the upfront tax savings and your rate falls in retirement.

After-tax value by yearView table
YearRoth (tax-free)Pre-tax (after-tax)
1$10,700$8,346
2$22,149$17,276
3$34,399$26,832
4$47,507$37,056
5$61,533$47,996
6$76,540$59,701
7$92,598$72,226
8$109,780$85,628
9$128,164$99,968
10$147,836$115,312
11$168,885$131,730
12$191,406$149,297
13$215,505$168,094
14$241,290$188,206
15$268,881$209,727
16$298,402$232,754
17$329,990$257,392
18$363,790$283,756
19$399,955$311,965
20$438,652$342,148
21$480,057$374,445
22$524,361$409,002
23$571,767$445,978
24$622,490$485,542
25$676,765$527,876
26$734,838$573,174
27$796,977$621,642
28$863,465$673,503
29$934,608$728,994
30$1,010,730$788,370

How the roth 403(b) vs. traditional 403(b) calculator works

It grows equal contributions to a Roth and a traditional 403(b), leaves the Roth tax-free, and taxes the traditional at your expected retirement rate to compare after-tax outcomes.

Worked example

Worked example: with annual 403(b) contribution of $10,000, years until retirement of 30 and annual return of 7.00%, the roth 403(b) vs traditional 403(b) calculator shows better after-tax outcome of Roth 403(b).

Roth 403(b) (tax-free)
$1,010,730
Pre-tax balance
$1,010,730
Pre-tax after tax
$788,370
Difference
$222,361

The formula

Both grow as (balance + contribution) × (1 + return). Roth after-tax = balance. Traditional after-tax = balance × (1 − retirement tax rate).

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the roth 403(b) vs. traditional 403(b) calculator

What is a 403(b)?

A retirement plan for employees of schools, hospitals and nonprofits, similar to a 401(k). Many offer both Roth and traditional contribution options.

Should I pick Roth or traditional 403(b)?

Roth favours those expecting a higher tax rate later; traditional favours those expecting a lower one. The after-tax comparison here helps you decide.

Can I split between Roth and traditional?

Usually yes, within the combined limit. Splitting hedges against uncertainty about your future tax bracket.

Is the Roth 403(b) vs. Traditional 403(b) Calculator free to use?

Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.