Traditional vs Roth IRA Calculator
Should you pay tax now or later? Enter your annual contribution, expected growth, and tax rates now versus in retirement to see which IRA leaves you with more after-tax money.
Estimates only — not financial advice. This calculator gives approximate figures for planning. It is not financial, tax, or legal advice; check with a qualified professional before making decisions.
How the Traditional vs Roth IRA calculator works
Both IRAs grow the same pre-tax dollars at the same rate — the only difference is when tax is paid. Traditional: the full contribution compounds, then retirement tax takes its cut at withdrawal. Roth: today’s tax shrinks the contribution first, then it grows tax-free. The calculator compounds both paths and compares the after-tax finish lines.
The rule of thumb falls right out of the math: if your retirement tax rate will be lower than today’s, Traditional usually wins; if it will be higher, Roth usually wins. Equal rates are a tie — try it and see.
only the two tax rates decide the winner when growth and years match
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Traditional vs Roth IRA calculator FAQ
What is the difference between Traditional and Roth IRAs?
Traditional IRA contributions may be tax-deductible now, and you pay tax on withdrawals in retirement. Roth contributions are after-tax now, but qualified withdrawals in retirement are tax-free.
When does a Roth IRA win?
When your tax rate in retirement will be higher than today — common for young earners whose income will grow. You pay tax now at the lower rate and enjoy tax-free growth.
When does a Traditional IRA win?
When your retirement tax rate will be lower than today’s — typical for peak earners who expect less income in retirement. The deduction now is worth more than the tax later.
What if the tax rates are the same?
Then it is a mathematical tie: paying x% now versus x% later on the same growth leaves identical after-tax money. Other factors — like required minimum distributions — break the tie.
Are contribution limits included?
No — the calculator compares any annual contribution you enter. Real IRAs have yearly IRS limits ($7,000 under 50 in recent years, plus catch-up); stay within them.