Roth vs Traditional IRA Calculator
Finance & InvestmentCompare Roth IRA vs Traditional IRA after-tax value at retirement using 2025 tax rules. Instantly see which account leaves more in your pocket.
Reviewed by the thecalcu.com team · Last updated July 1, 2026
Roth IRA
Tax-free at withdrawal
$0
Traditional IRA
22% tax at withdrawal
$0
Tax rates are equal — Roth has higher after-tax value due to tax-free withdrawals. Consider your future rate outlook.
What is a Roth vs IRA?
A Roth vs Traditional IRA calculator compares the after-tax retirement wealth you would accumulate in each account type based on your specific situation, your current age, expected retirement age, contribution amount, current tax rate, and the tax rate you expect to pay in retirement. Rather than giving generic rules, it models your actual numbers so you can see which account type leaves more money in your pocket when you retire.
Individual Retirement Accounts (IRAs) are one of the most powerful tax-advantaged vehicles available to American savers. The fundamental difference between the two types is when you pay taxes. A Traditional IRA gives you a tax deduction on contributions today, your investment grows tax-deferred, but every withdrawal in retirement is taxed as ordinary income. A Roth IRA flips this: you contribute after-tax dollars now, but qualified withdrawals in retirement (including all growth) are completely tax-free.
Both accounts grow at the same compounded rate. The question is purely about tax timing: do you want to pay taxes at your current marginal rate, or at your future retirement rate? If your current rate is higher, Traditional wins. If your retirement rate is higher (or equal), Roth wins, because tax-free compounding over decades is more valuable than a deduction today.
For 2025, the IRS allows contributions of up to $7,000 per year ($8,000 if you are 50 or older) across all your IRAs combined. Roth IRA eligibility phases out between $150,000 and $165,000 MAGI for single filers, and $236,000 to $246,000 for married filing jointly. Traditional IRA deductibility has its own phase-out range if you are covered by a workplace plan.
To plan the rest of your retirement picture, see the Social Security Benefits Estimator for your likely monthly income from Social Security, and the 401(k) Calculator for your workplace retirement account projections.
Why Use a Roth vs Traditional IRA Calculator?
The right IRA type depends entirely on your individual tax situation, and that situation changes year to year. A Roth vs Traditional IRA calculator removes the guesswork by running the actual numbers across your full investment horizon rather than relying on rules of thumb.
Instant tax-rate sensitivity. The single most important variable is the spread between your current and retirement tax rates. The calculator lets you slide both rates to instantly see how the comparison shifts. If you are in the 22% bracket now and expect 12% in retirement, Traditional dominates. Flip those rates and Roth dominates. No rule of thumb captures this, only your specific numbers do.
Accurate compounding. Even a $1,000 difference in after-tax retirement value is worth understanding when it compounds over 30+ years. The calculator uses month-by-month compound growth (not simplified annual compounding), giving you precise projections rather than approximations.
Side-by-side output. Rather than calculating Roth and Traditional separately and trying to compare results in your head, the tool shows both accounts simultaneously, including the Traditional account's annual tax deduction benefit, so the trade-off is visible in one screen.
Scenario planning. Tax rates are not fixed. Congress has changed rates multiple times since the IRA was created in 1974. Adjusting the retirement tax rate slider from 12% to 24% shows you the range of possible outcomes and helps you decide how much uncertainty to hedge against.
Who Should Use This Calculator?
Workers in their 20s and 30s with lower incomes. Early career earnings typically place workers in the 22% bracket or below, while retirement income, especially if they are successful savers, may be higher. The Roth's tax-free compounding is most powerful over long time horizons, and younger savers who lock in at today's rates benefit the most from decades of tax-free growth.
Mid-career professionals deciding how to max out their IRA. If you are in the 24% or 32% bracket and wondering whether to prioritize the immediate deduction (Traditional) or tax-free withdrawal (Roth), this calculator gives you a direct comparison for your specific tax rates and years remaining to retirement.
Near-retirees planning Roth conversions. Individuals approaching retirement who want to evaluate converting a Traditional IRA to a Roth can use this tool to understand the long-term benefit of conversion. Combining this with the RMD Calculator helps estimate future Required Minimum Distribution obligations that a conversion could reduce.
High-income earners exploring the backdoor Roth. Those who earn above the Roth income limits ($165,000 single, $246,000 married for 2025) cannot contribute directly to a Roth IRA, but can use the backdoor conversion strategy. This calculator helps quantify the long-term benefit of pursuing that strategy.
Retirees comparing accounts when choosing withdrawals. If you have both a Roth and a Traditional IRA in retirement, this calculator helps model which account to draw from first in a given tax year based on your expected marginal rate.
What Insights Does the Roth vs IRA Calculator Give You?
Roth After-Tax Value is the primary output and represents the full account balance at retirement, since Roth withdrawals are tax-free, your pre-tax balance equals your after-tax value. This is the number that matters for spending in retirement.
Traditional After-Tax Value applies your expected retirement tax rate to the same account balance, showing what you actually keep after paying taxes on every withdrawal. If the retirement rate is 22%, you keep 78% of the Traditional balance. Compare this directly with the Roth After-Tax Value to see which account type wins at your projected rates.
Balance at Retirement shows the pre-tax account balance that both the Roth and Traditional accounts would reach, they are identical because the contributions and growth rate are the same. This makes the after-tax comparison clean: the only variable is the tax treatment.
Annual Tax Savings (Traditional) is the yearly tax deduction benefit from a Traditional IRA contribution. At a 22% tax rate and $7,000 contribution, this is $1,540 per year in reduced federal taxes. This is real money you could redirect to other investments, though the calculator does not model the compounded effect of reinvesting those savings.
Roth Tax-Free Benefit quantifies the dollar advantage of Roth's tax-free withdrawals, it equals the taxes the Traditional account would owe that the Roth avoids. When this number is large, the Roth is the clear winner. When it is small relative to the annual Traditional tax savings, the choice is closer and depends on your reinvestment discipline.
How to use this Roth vs IRA calculator
Set your Current Age, enter your age today using the slider. The younger you are, the longer the compounding period, and the more significant the tax-free benefit becomes.
Set your Retirement Age, the default is 65. Adjust this if you plan to retire early (FIRE) or plan to work into your late 60s. Every additional year extends the compounding period and widths the Roth's tax-free advantage.
Enter your Annual Contribution, the 2025 maximum is $7,000 ($8,000 if you are 50+). If you cannot max out, enter your realistic annual amount. Even $3,000 per year makes a dramatic difference over a 35-year career.
Set your Current Tax Rate, enter your current federal marginal tax bracket. This is the rate on your last dollar of income: 10%, 12%, 22%, 24%, 32%, 35%, or 37% for 2025. Do not use your effective (average) rate, the marginal rate is what matters for the deduction comparison.
Set your Retirement Tax Rate, estimate the federal marginal rate you expect to pay when you begin withdrawing. This is harder to predict but is the most important variable. Consider your expected Social Security income, pension, RMDs, and other income sources. If uncertain, run the calculator at two or three different retirement rates to see the range of outcomes.
Set Expected Annual Return, 7% is a historically reasonable long-term real return for a diversified equity portfolio. Conservative investors might use 5–6%; aggressive investors might use 8–9%. Adjust this to reflect your actual investment allocation.
Enter your Current IRA Balance, if you already have funds in a Roth or Traditional IRA, enter that balance here. The calculator assumes both accounts start at this balance and grow together, keeping the comparison apples-to-apples.
Read the comparison panel, the tool highlights the account with the higher after-tax value. The recommendation text explains the reasoning based on your tax rate inputs, so you have a one-sentence summary to share with your financial advisor.
Show formula & methodology ↓Show less ↑
Formula & Methodology
Both the Roth IRA and Traditional IRA are projected using the same compound growth formula: Balance at retirement: B = B₀ × (1 + r/12)^(n×12) + (C/12) × ((1 + r/12)^(n×12) − 1) / (r/12) Where: - B₀ = current IRA balance ($) - r = expected annual return rate (decimal, e.g. 0.07 for 7%) - n = years to retirement (retirement age − current age) - C = annual contribution ($) - r/12 = monthly growth rate After-tax values: Roth After-Tax Value = B (no tax on withdrawal) Traditional After-Tax Value = B × (1 − t_r) Where t_r = expected retirement marginal tax rate (decimal) Annual Traditional tax deduction: Tax savings = C × t_c Where t_c = current marginal tax rate (decimal) Worked example: Suppose you are age 30, plan to retire at 65 (35 years), contribute $7,000 per year, expect 7% annual return, are in the 22% tax bracket now, and expect to be in the 22% bracket in retirement, with no existing balance. Monthly rate = (1.07)^(1/12) − 1 = 0.5654% Balance at 65 = ($7,000/12) × ((1.005654)^420 − 1) / 0.005654 ≈ $998,000 Roth after-tax value: $998,000 (full balance, no tax) Traditional after-tax value: $998,000 × (1 − 0.22) = $778,440 Annual Traditional tax deduction: $7,000 × 22% = $1,540/year Roth tax-free benefit: $998,000 − $778,440 = $219,560 In this equal-rate scenario, the Roth delivers $219,560 more in spendable retirement wealth. The Traditional account provides $1,540 per year in immediate tax savings, but those savings would need to be consistently reinvested and compound at the same rate to close the gap. Key assumption: The calculator assumes the same dollar contribution goes into both accounts. In practice, a Traditional IRA contribution is "worth more" because the government effectively subsidizes it through the deduction. A fully equivalent comparison would fund the Roth with a smaller after-tax contribution that matches the Traditional's out-of-pocket cost. The side-by-side shown here is the standard industry comparison and is most useful for evaluating the tax-rate break-even point.
Frequently Asked Questions
What is the difference between a Roth IRA and a Traditional IRA?
How does the Roth vs Traditional IRA calculator work?
What is the 2025 IRA contribution limit?
When is a Roth IRA better than a Traditional IRA?
When is a Traditional IRA better than a Roth IRA?
Can I contribute to both a Roth and a Traditional IRA in the same year?
What income limits apply to Roth IRA contributions in 2025?
What does 'Roth Tax-Free Benefit' mean in this calculator?
Does this calculator account for the Traditional IRA tax savings being reinvested?
Can I convert my Traditional IRA to a Roth IRA?
What are Required Minimum Distributions and do they affect my IRA choice?
How does my age affect which IRA type I should choose?
Planning this?
This calculator is step 2 of 5 in our US Retirement Planner.