2026 limits included

Roth vs Traditional IRA Calculator: See Your After-Tax Retirement Value

Enter your details to see which account puts more money in your pocket at retirement. Year-by-year projections included.

Roth vs Traditional IRA Calculator

Enter your details. See which account wins for your situation.

Your Details

$7,500
7%
Contributing $7,500/yr for 35 years at 7% return
WinnerRoth IRA

Same tax rate both ways, but Roth still edges ahead: tax-free withdrawals give you flexibility, no RMDs, and better estate planning.

Roth IRA

Recommended
Total contributions$262,500
Balance at retirement$1,036,777
Tax deduction nowNone
Taxes at withdrawal$0 (tax-free)
Net value to you$1,036,777

Traditional IRA

Total contributions$262,500
Balance at retirement$1,036,777
Tax deduction savings now+$57,750
Taxes at withdrawal (22%)-$228,091
Net value to you$866,436

Calculator assumes consistent annual contributions and a fixed return rate. Traditional IRA deduction savings assumes the full deduction is available (income limits apply if you have a workplace retirement plan). Roth IRA income limits may affect eligibility. This is not financial advice.

How the Math Works

The calculation is straightforward. Both accounts grow at the same rate using the compound interest formula: FV = PMT x [((1+r)^n - 1) / r], where PMT is your annual contribution, r is the annual return rate, and n is the number of years.

The difference is when you pay taxes:

Roth IRA

You contribute after-tax dollars. The entire balance at retirement is yours, tax-free. Roth net value = total balance.

Traditional IRA

You contribute pre-tax dollars (saving your marginal rate now). But every dollar withdrawn is taxed at your retirement rate. Traditional net = balance x (1 - retirement rate) + deduction savings.

The critical insight: if your current tax rate equals your retirement tax rate, the math is identical and Roth wins by default (no RMDs, more flexibility, better estate planning). Roth also wins whenever your retirement rate is higher than your current rate. Traditional only wins when you are confident your retirement rate will be meaningfully lower.

What to Do Next

Roth Won?

See exactly how tax-free compounding builds wealth over 15, 25, and 40 years.

Traditional Won?

Learn when and how to convert your Traditional IRA to Roth at the right time.

Over the Income Limit?

Step-by-step backdoor Roth guide for high earners who cannot contribute directly.

Key Assumptions and Limitations

  • 1. Constant annual contribution and return rate (real returns vary year to year)
  • 2. No state taxes modelled (some states tax Traditional withdrawals, some do not)
  • 3. Traditional IRA deduction savings are not reinvested (conservative assumption)
  • 4. No RMD modelling for Traditional IRA (RMDs start at 73 and can push you into higher brackets)
  • 5. Does not account for IRMAA Medicare surcharges triggered by high Traditional withdrawals

For a deeper look at withdrawal rules and RMDs, see the withdrawal rules guide.