Retirement & Planning

Roth IRA vs. Traditional IRA Calculator

Use this calculator to determine which IRA may be right for you.

Inputs

Annual contribution

Years until retirement

Annual return

Tax rate today

Tax rate in retirement

Estimates only. Adjust any value to recalculate instantly.

Results

Better after-tax outcome Roth IRA by $155,652 on equal contributions

Roth (tax-free) $707,511

Traditional (pre-tax) $707,511

Traditional (after-tax) $551,859

Difference $155,652

After-tax retirement value

Roth $708k
Traditional (after tax) $552k

After-tax value Roth (tax-free)Traditional (after tax)

On equal contributions, the Roth wins when your retirement tax rate (22%) is at or above today's (24%). A traditional IRA can pull ahead if you invest the upfront tax deduction and your rate falls in retirement.

After-tax value by yearView table

Year	Roth (tax-free)	Traditional (after-tax)
1	$7,490	$5,842
2	$15,504	$12,093
3	$24,080	$18,782
4	$33,255	$25,939
5	$43,073	$33,597
6	$53,578	$41,791
7	$64,819	$50,559
8	$76,846	$59,940
9	$89,715	$69,978
10	$103,485	$80,718
11	$118,219	$92,211
12	$133,985	$104,508
13	$150,853	$117,666
14	$168,903	$131,744
15	$188,216	$146,809
16	$208,882	$162,928
17	$230,993	$180,175
18	$254,653	$198,629
19	$279,968	$218,375
20	$307,056	$239,504
21	$336,040	$262,111
22	$367,053	$286,301
23	$400,237	$312,185
24	$435,743	$339,880
25	$473,735	$369,514
26	$514,387	$401,222
27	$557,884	$435,149
28	$604,426	$471,452
29	$654,226	$510,296
30	$707,511	$551,859

How the roth ira vs. traditional ira calculator works

It projects equal contributions in both accounts to retirement, leaves the Roth untaxed, and taxes the traditional balance at your expected retirement rate. Comparing the after-tax results shows which account leaves you with more spendable money.

Worked example

Worked example: with annual contribution of $7,000, years until retirement of 30 and annual return of 7.00%, the roth ira vs traditional ira calculator shows better after-tax outcome of Roth IRA.

Roth (tax-free): $707,511
Traditional (pre-tax): $707,511
Traditional (after-tax): $551,859
Difference: $155,652

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 ira vs. traditional ira calculator

Should I choose a Roth or traditional IRA?

Roth wins if your tax rate in retirement is the same or higher than today; traditional can win if your rate will be lower and you invest the upfront deduction. The calculator compares after-tax outcomes.

What is the key difference between them?

A Roth is funded with after-tax money and withdrawn tax-free; a traditional IRA is funded pre-tax and taxed on withdrawal. The bet is on your future tax rate.

Can I contribute to both?

Yes, as long as your total stays within the annual IRA limit. Splitting contributions hedges your bet on future tax rates.

Is the Roth IRA vs. Traditional IRA 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.

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