Financial Tools

Roth vs Traditional IRA Calculator

The comparison done fairly: a dollar of take home pay buys more traditional contribution than Roth, because the traditional dollar is never taxed on the way in. Once that is counted, the whole question is whether your rate in retirement is higher or lower than today.

The Contribution

Take-Home Pay You Will Contribute (per year, out of pocket)

Already Saved in Either Account

Years Until You Withdraw

Annual Return (percent, compounded yearly)

Your Tax Rates

Marginal Rate Today (percent, federal plus state)

Marginal Rate in Retirement (percent, your best estimate)

Values shown are examples. Contribution limits and income phase-outs are set by the IRS each year and are not applied here, this compares the two account types on the money you can actually put in.

See your full report

Same Out of Pocket

Ahead	n/a
Roth, Yours Tax Free	$0
Traditional, After Tax	$0
The Gap	n/a

Pre-Tax Contribution the Same Cash Buys	$0
Tax You Do Not Pay Today	$0
Tax Due on the Traditional Later	$0
Break-Even Retirement Rate	n/a

If Both Received the Same Dollars: Roth	$0
If Both Received the Same Dollars: Traditional	$0

Save as PDF Copy link Save this version

Everything here stays in your browser. The link carries your inputs inside the address itself, and the PDF is made by your own device.

For illustration only, not financial advice. Results are estimates based on the numbers you enter and do not constitute an offer, rate quote or approval.

How this is worked out

The comparison people usually see puts the same dollars in both accounts, which quietly ignores that a traditional contribution was never taxed. A dollar of take-home pay buys $1 of Roth contribution, or 1/(1-t) of traditional, where t is your rate today.

Do it that way and both sides grow at the same rate for the same years, the Roth comes out whole and the traditional comes out taxed at your retirement rate. Everything cancels except the two tax rates.

So the answer is a single comparison: if your rate in retirement is lower than it is today, traditional wins, if higher, Roth wins, and if they match it is a genuine tie. Contribution limits, income phase-outs and employer matches sit outside this model.

Questions people ask

Why does the traditional side get a bigger contribution?

Because it comes out of pay before tax. Spending $7,000 of take-home on a Roth is the same sacrifice as directing $9,211 of pre-tax pay into a traditional account at a 24% rate. Comparing $7,000 against $7,000 hides that.

What if I cannot contribute the larger traditional amount?

Then the same-dollars view at the bottom of the results is the honest one for you, and Roth looks better in it. The limit binding is a real constraint and it is the strongest practical argument for Roth.

Does the calculation care about the return I assume?

Under the same out-of-pocket view, no. The growth factor multiplies both sides identically and cancels. That is why the return field changes the size of the numbers but never the winner.

What is not in this model?

Required minimum distributions on the traditional side, the effect of taxable income on Social Security taxation and Medicare premiums, state tax, and the estate benefit of a Roth. All of them lean towards Roth at the margin.

Is a backdoor conversion covered here?

No. This compares the two account types on new money. A conversion has its own tax bill in the year you do it, which is a different question.

Most Used Calculators

Expense Calculator