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Roth vs. Traditional IRA Calculator

A free online Roth vs. Traditional IRA calculator that compares the after-tax value of both account types at retirement, based on your current and expected retirement tax rates, contribution amount, and expected return. Compare on an equal-contribution or equal-out-of-pocket-cost basis.

Why the comparison basis matters

A Traditional IRA contribution is pre-tax, so putting in $7,000 only reduces your take-home pay by $7,000 minus your tax savings. A Roth contribution is after-tax, so $7,000 in costs the full $7,000 out-of-pocket. Comparing the two account types on the same dollar contribution understates the Traditional IRA's real-world advantage during the contribution years — which is why this calculator also offers a same-out-of-pocket-cost basis, where the Traditional contribution is grossed up to cost the same as the Roth.

The tax-rate rule of thumb

If your tax rate is identical now and in retirement, and you compare on an equal out-of-pocket basis, Roth and Traditional IRAs produce mathematically identical after-tax results — the tax is simply paid at a different point in time. The entire decision comes down to whether you expect your tax rate to be higher or lower in retirement than it is today.

What this calculator doesn't cover

This tool focuses purely on the tax-rate trade-off. It doesn't account for Required Minimum Distributions (RMDs), which apply to Traditional IRAs starting at a certain age but never apply to Roth IRAs during the original owner's lifetime, or the income limits that can restrict direct Roth IRA contributions at higher income levels.

Common Mistakes to Avoid

Comparing the two accounts on equal contribution amounts only

Solution:

This ignores that a Traditional contribution is subsidized by an immediate tax deduction, making it cheaper out-of-pocket than the same Roth contribution — use the "same out-of-pocket cost" basis for a fairer comparison of what each option actually costs you today.

Assuming your current tax bracket will stay the same in retirement

Solution:

Many people are in a lower tax bracket in retirement, which favors Traditional — but others end up in a similar or higher bracket due to required minimum distributions, other income, or future tax law changes, which favors Roth.

Ignoring Required Minimum Distributions (RMDs)

Solution:

Traditional IRAs require you to start withdrawing (and paying tax on) a minimum amount starting at a certain age, whether you need the income or not — Roth IRAs have no RMDs during the original owner's lifetime, which this calculator's simple after-tax comparison doesn't capture.

Not checking Roth income limits

Solution:

Direct Roth IRA contributions phase out above certain income levels — high earners may need a backdoor Roth conversion strategy instead, which this calculator doesn't model.

Frequently Asked Questions

It depends almost entirely on whether you expect your tax rate to be higher or lower in retirement than it is now. Lower expected retirement tax rate favors Traditional; higher or equal expected retirement tax rate favors Roth, especially when compared on an equal out-of-pocket basis.
"Same contribution amount" assumes you put the identical dollar figure into either account, which makes the Roth contribution cost more out-of-pocket (since it's after-tax). "Same out-of-pocket cost" grosses up the Traditional contribution so both options cost you the same today — a fairer real-world comparison.
RMDs are mandatory withdrawals the IRS requires from Traditional IRAs starting at a certain age, taxed as ordinary income. Roth IRAs have no RMDs during the original owner's lifetime, which is a meaningful advantage this calculator's after-tax value comparison doesn't fully capture.
Yes — direct Roth IRA contributions phase out above certain income thresholds, which change periodically. Traditional IRA contributions have no income limit, though the tax deduction can phase out if you're covered by a workplace retirement plan.
No — every calculation runs locally in your browser. Nothing you enter is uploaded, logged, or stored on any server.

Free Online Roth vs. Traditional IRA Calculator

Compare the after-tax value of a Roth IRA and a Traditional IRA at retirement, based on your current tax rate, your expected tax rate in retirement, your contribution amount, and your expected annual return. Choose between comparing on the same contribution amount or the same out-of-pocket cost.

What You Get

  • A side-by-side after-tax comparison of Traditional and Roth IRA outcomes at retirement
  • A choice of comparison basis: same dollar contribution, or same out-of-pocket cost (accounting for the Traditional IRA's upfront tax deduction)
  • The pre-tax growth figure for the Traditional IRA and the tax owed on withdrawal
  • A clear statement of which account wins under your inputs, and by how much
  • No signup, no data stored — everything runs in your browser

Who Uses This Calculator

Anyone deciding between a Roth and Traditional IRA — or trying to understand how their current vs. expected future tax rate changes which one comes out ahead — uses this calculator for a clear, free comparison.