Roth IRA Conversion Calculator
This calculator will show the advantage, if any, of converting your IRA to a Roth.
How the roth ira conversion calculator works
It grows the converted amount tax-free in a Roth and compares it to leaving the money in a traditional IRA, where it grows tax-deferred but is taxed at withdrawal. The conversion tax is paid from outside funds, so the full amount keeps compounding.
Worked example: with ira amount to convert of $100,000, tax rate on the conversion of 24.00% and annual return of 7.00%, the roth ira conversion calculator shows roth conversion advantage of $85,133.
- Conversion tax now
- $24,000
- Roth value (tax-free)
- $386,968
- If not converted (after tax)
- $301,835
- Net advantage
- $85,133
The formula
Roth value = amount × (1 + return)^years. Traditional value = amount × (1 + return)^years × (1 − retirement tax rate). Conversion tax = amount × today’s rate.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the roth ira conversion calculator
Is a Roth conversion worth it?
It usually pays off when your retirement tax rate is at or above today’s, you can pay the conversion tax from outside money, and you have years for tax-free growth to outweigh the upfront tax.
How is a conversion taxed?
The converted amount is added to your taxable income that year and taxed at ordinary rates. Converting in a lower-income year, or in smaller annual chunks, can reduce the tax hit.
Are there other benefits to converting?
Yes — Roth IRAs have no required minimum distributions for the owner, and tax-free withdrawals give you flexibility to manage taxable income in retirement.
Is the Roth IRA Conversion 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.