Retirement Tools
Roth vs. Traditional IRA Calculator
Compare the after-tax value at retirement of contributing the same amount to a Roth or a Traditional account.
This is a rough estimate for education, not tax or investment advice. It assumes the same dollar contribution to either account and ignores what you could do with the up-front tax savings from a Traditional contribution, income limits, and required minimum distributions. Nothing you type is sent anywhere.
How this is calculated
Both accounts grow at the same assumed return. A Traditional account is funded with pre-tax money and taxed as ordinary income when you withdraw it, so its future value is reduced by your assumed retirement tax rate. A Roth account is funded with money you have already paid tax on, so qualified withdrawals are tax-free, and its full future value is what you get to keep. This comparison assumes the same nominal dollar amount goes into either account each year; a more complete comparison would also consider investing the tax savings from a Traditional contribution.
Frequently asked questions
Which is better?
If your tax rate will be lower in retirement than it is now, Traditional tends to win; if it will be similar or higher, Roth tends to win. Many people split contributions between both to hedge against uncertainty.
Does this account for contribution limits?
No. IRS annual contribution limits and income phase-outs for Roth eligibility change yearly; check the current limits before contributing.
Related: the 401k match calculator and the FIRE calculator.