Roth vs Traditional IRA Calculator
🔒 Runs in your browser — 100% private
Compare a Roth IRA and a Traditional IRA on an apples-to-apples, after-tax basis — enter your current tax bracket, expected retirement tax bracket, annual contribution and an assumed growth rate to see which one actually leaves you more money in retirement.
How to use roth vs traditional ira calculator
- Enter your contribution and growth rate
The pre-tax dollar amount you're comparing, and an assumed average annual investment return.
- Enter your current and retirement tax brackets
Your marginal tax rate now, and what you expect it to be when you withdraw in retirement.
- Compare
See both accounts' after-tax value side by side, and a clear verdict on which wins for your numbers.
Formula & methodology
Traditional: the full pre-tax contribution grows at the assumed rate, then is taxed at your retirement bracket on withdrawal. Roth: you pay tax now (at your current bracket) on the same pre-tax amount, invest what's left, and it grows completely tax-free. When your current and retirement tax rates are equal, both give the identical after-tax result — that's the standard textbook proof this calculator's numbers should match.
Example: $7,000/year for 30 years at 7% growth. If your current and retirement bracket are both 22%, Traditional and Roth both net about $551,859 after tax — identical. If your retirement bracket drops to 12%, Traditional wins (≈$622,610 vs Roth's ≈$537,709 at the same 24% current rate) — pay tax later, at the lower rate.
Features
Both accounts are compared on the same pre-tax dollar amount, not a naive equal-contribution comparison that quietly favors Roth.
When your current and retirement tax rate are equal, the tool shows both accounts landing on the same number — proving the comparison is doing real tax math, not guessing.
Growth rate and both tax brackets are inputs you set, not hidden constants.
Nothing you enter is uploaded — the comparison runs locally.
Supported formats and limitations
Text and structured input supported by this tool.
Use cases include personal workflows, content preparation, and quick checks. Review output before relying on it for legal, financial, accessibility, or production decisions.
Frequently asked questions
Why does the Traditional side ask for a 'pre-tax equivalent' contribution?
To compare fairly, both accounts need to start from the same amount of your pre-tax income. A Traditional IRA lets you invest that full pre-tax amount; a Roth IRA effectively 'shrinks' it because you pay tax on it first — the calculator handles that shrinkage for you.
Which is actually better for most people?
It depends entirely on whether you expect your tax rate to be higher or lower in retirement than it is now. Many people in their peak earning years are in a higher bracket than they'll be in retirement, which favors Traditional — but there's no universal answer, which is why this tool asks for your own numbers instead of assuming one.
Does this account for the annual IRA contribution limit?
No — it projects whatever contribution amount you enter. Check the current-year IRS IRA contribution limit separately if your number might exceed it.
Does this include required minimum distributions (RMDs)?
No — Traditional IRAs are subject to RMDs starting at a certain age, while Roth IRAs (for the original owner) are not. This tool compares total after-tax value only, not withdrawal timing rules.