Roth IRA vs Traditional IRA Calculator
Compare Roth IRA vs Traditional IRA to find which saves more in taxes — factoring in current vs retirement tax rates and contribution limits.
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How to use this calculator
- 1
Enter an annual IRA contribution. The tool caps it at the $7,500 figure built into it (labelled 2026); catch-up amounts for older savers are not modelled.
- 2
Enter your current age, the age you plan to retire, and a constant expected annual return.
- 3
Enter the marginal tax rate you expect to pay now and the rate you expect to pay on withdrawals in retirement. Both are rates you supply; the tool does not look them up.
- 4
The tool compares after-tax value at retirement for the two account types under your assumptions. It reports a winner only when the values differ.
Frequently asked questions
How does this tool compare the two accounts?
This tool uses an equal-cost comparison with deposits made at the start of each year. The Traditional account receives the full contribution and its final balance is reduced by your retirement tax rate. The Roth account receives the contribution minus your current tax rate, so both cost the same take-home dollars, and its final balance is taken as tax-free. The larger after-tax value is reported as the better choice, together with the size of the gap.
Why do the two pre-tax balances differ?
The Roth balance is smaller because less goes in: the contribution is reduced by your current rate before it is invested. The Traditional balance is larger but is taxed on the way out. The after-tax lines, not the pre-tax balances, are what the comparison uses.
What decides the winner in this model?
Only the two tax rates. Because both accounts grow by the same factor, the Roth wins when the current rate is lower than the retirement rate, the Traditional account wins when the current rate is higher, and a tie is shown as Equal. The return and the number of years change the size of the dollar gap, not who comes out ahead. The rates are your own guesses about the future, so treat the verdict as a calculation, not a prediction or advice.
What contribution limit does it apply?
The figure built into this tool is $7,500 a year, labelled 2026. Anything larger is reduced to it and a note appears. The extra amount allowed for people aged 50 and over, income-based eligibility limits, and deduction phase-outs for Traditional contributions are not modelled. US limits change every year and this tool’s tables are not updated automatically, so the IRS or a qualified adviser governs.
How are zero and blank inputs treated?
A 0, which is also what a cleared box becomes, is respected for the current tax rate, retirement tax rate and return, so it does not bring back 22%, 15% or 7%. An age of 0 falls back to 30 for the current age and 65 for the retirement age. A 0% return is handled directly, so the balance is simply contributions times years. If the retirement age is not later than the current age, or the contribution is zero, the tool returns an IRA balance of $0.
What is left out of the comparison?
Withdrawal rules, penalties for early distributions, required distributions, five-year holding conditions, state income tax, the effect of retirement income on benefits taxation, rate changes over time, and what you might do with the tax saved on a Traditional deduction are not modelled. Each is a reason the real outcome could differ.
Can I contribute to both account types?
The tool models one account at a time with one contribution amount and does not split a contribution between them. It also does not test whether you are eligible to contribute to either.
Roth IRA versus Traditional IRA: what the comparison assumes
An equal take-home cost
To compare fairly, the tool assumes the Roth and Traditional deposits cost you the same in after-tax pay. If you contribute $7,500 to the Traditional account, the matching Roth deposit is $7,500 times (1 minus your current tax rate), because that is what the same pay buys after tax. Both amounts are invested at the same return, with deposits at the start of each year over the years between your two ages. At retirement the Traditional balance is reduced by your retirement tax rate and the Roth balance is left whole. The page reports the better choice, both after-tax values, both pre-tax balances and the gap.
Worked examples
With the defaults ($7,500 a year, age 30 to 65, 22% now, 15% in retirement, 7% return) the Roth after-tax value is $865,294 and the Traditional after-tax value is $942,948, so the tool reports Traditional as better by $77,655. The Traditional pre-tax balance behind that is $1,109,351. Reverse the rates with a $5,000 contribution, ages 45 to 65, 24% now, 32% in retirement and 6% return and the Roth reaches $148,172 against $132,575, a Roth advantage of $15,597.
Four scenarios
The table varies the rates, the contribution and the starting age. The third row sets both rates to 22%, which produces identical after-tax values and an Equal result. The last row enters $9,000, which the tool reduces to its built-in $7,500 limit before calculating.
| Inputs | Roth | Traditional | Result shown |
|---|---|---|---|
| $7,500; age 30 to 65; 22% now, 15% later; 7% | $865,294 | $942,948 | Traditional by $77,655 |
| $5,000; age 45 to 65; 24% now, 32% later; 6% | $148,172 | $132,575 | Roth by $15,597 |
| $7,500; age 30 to 65; 22% now, 22% later; 7% | $865,294 | $865,294 | Equal |
| $9,000 (capped to $7,500); age 25 to 65; 12% now, 22% later; 7% | $1,409,823 | $1,249,616 | Roth by $160,207 |
Why the return does not pick the winner
Both accounts are multiplied by the same growth factor, so the comparison reduces to one minus the current rate against one minus the retirement rate. Equal rates tie at any return and any horizon, as the third row shows with $865,294 on both sides. A higher return or a longer horizon widens whichever gap exists, which is why the 40-year row has a gap above $160,000 on a 10-point difference in rates. The practical consequence is that your estimate of the two tax rates drives the result, and those are the least certain inputs on the page.
What is simplified
Rates are flat and constant, contributions are level, and the return is one number every year. The model ignores eligibility, deduction limits, withdrawal conditions, required distributions and state tax, and it assumes that any tax saved by a Traditional deduction is not invested separately. The contribution limit is a $7,500 figure built into the tool and labelled 2026; US limits change every year, the tool’s tables are not updated automatically, and the IRS governs. The output is a comparison of two clean scenarios, not guidance on which account to open.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →