What is the core difference?

Traditional IRA contributions are pre-tax (deductible now) and taxed on withdrawal. Roth IRA contributions are after-tax now but withdrawals in retirement are tax-free.

Roth tends to win when your tax rate in retirement is the same or higher than today, or when you value tax-free withdrawals and no Required Minimum Distributions.

When is Traditional better?

Traditional tends to win when your tax rate will be meaningfully lower in retirement than it is today, since you defer tax at a high rate and pay at a lower one.

Does this assume the tax savings are invested?

For a like-for-like comparison this tool taxes the Traditional balance at withdrawal and the Roth contribution up front, comparing equal gross contributions. Real situations vary — consult a tax professional.

What are the contribution limits?

For 2025 the IRA contribution limit is $7,000 ($8,000 if 50+). Roth IRA eligibility also phases out at higher incomes.

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Roth vs. Traditional IRA Calculator

Roth vs. Traditional IRA Calculator

Compare the after-tax retirement value of a Roth IRA versus a Traditional IRA for the same yearly contribution.

Your situation

Current age Retirement age

Annual contribution

Tax rate now

Tax rate in retirement

Expected annual return

After-tax winner

Roth IRA

Traditional IRA

Both are shown as after-tax value at retirement for the same gross annual contribution. Tax rates and rules change — confirm with a tax professional.

How to Use

1
Enter your ages. Add your current age and planned retirement age.
2
Set the contribution. Enter the annual amount you will contribute.
3
Enter tax rates. Add your current marginal tax rate and your expected rate in retirement.
4
Compare. See which account leaves you with more after-tax money.

Calculation Method

Both accounts grow the same annual contribution by the future-value-of-an-annuity factor, then apply tax at the point each account is taxed:

Traditional_after-tax = C · A · (1 − t_ret)
Roth_after-tax = C · (1 − t_now) · A

where C = annual contribution, A = future-value annuity factor [((1+r)ⁿ−1)/r], t_now = current tax rate, t_ret = retirement tax rate.

Examples

Example. Contributing $7,000/year for 30 years at 7%: if your tax rate is 24% now and 22% in retirement, the after-tax balances are close, with Roth slightly ahead because the only tax (paid today) is at a rate similar to the deferred one.

Frequently Asked Questions

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Disclaimer: Calculations are projections based on the assumptions you provide and are for informational purposes only. They are not financial, tax, or investment advice. Investment returns are not guaranteed. Consult a Certified Financial Planner (CFP) before making retirement decisions.

Data source: Standard pre-tax/after-tax IRA comparison methodology.