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Retirement

Roth vs Traditional IRA Calculator

Compare Roth and Traditional IRA outcomes after tax, based on your tax rate today versus in retirement.

Updated June 2026 · Editorial standards

Your details

$
%
%
%
Roth after tax
$707,511
Traditional after tax
$551,859
Difference
$155,652
Traditional deductions
$50,400

With equal $7,000 contributions, the Roth IRA wins by $155,652 after tax — its withdrawals are tax-free, while the Traditional balance is taxed at your 22% retirement rate. Note the Traditional route does give you about $50,400 in deductions along the way (at your 24% current rate); if you invest those savings, the gap narrows — and Traditional tends to win when your retirement tax rate is well below your current 24%.

After-tax value at each age

Year-by-year comparison

AgeRoth (after-tax)Traditional (after-tax)
35$0$0
40$43,073$33,597
45$103,485$80,718
50$188,216$146,809
55$307,056$239,504
60$473,735$369,514
65$707,511$551,859
By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the roth vs traditional ira calculator?

In short

A Roth IRA is funded with after-tax money and withdrawals are tax-free; a Traditional IRA is funded pre-tax (deductible) and withdrawals are taxed as ordinary income. The core rule: if your retirement tax rate will be lower than today's rate, Traditional tends to win; if higher, Roth wins; if identical, they tie mathematically. Contributing $7,000/year for 30 years at 7% grows to about $661,000 — tax-free in a Roth, but worth about $516,000 after a 22% retirement tax in a Traditional.

This calculator grows equal annual contributions in a Roth and a Traditional IRA at the same return, then compares the after-tax value at retirement: the Roth balance is tax-free while the Traditional balance is reduced by your expected retirement tax rate. It also shows the upfront deductions the Traditional route earns at your current marginal rate, so you can weigh both sides.

How to use this calculator

  1. 1Enter your current age and planned retirement age.
  2. 2Enter your annual IRA contribution (the 2024 limit is $7,000, or $8,000 if 50+).
  3. 3Set your expected annual investment return.
  4. 4Enter your current marginal tax rate and your expected tax rate in retirement.
  5. 5Compare the after-tax balances and read which account wins and why.

The formula

Roth=FV
Traditional=FV×(1−tax)
Both accounts grow identically: FV = C × ((1 + r)ⁿ − 1) ÷ r × (1 + r). Roth after-tax value = FV (withdrawals are tax-free). Traditional after-tax value = FV × (1 − retirement tax rate). Traditional also generates annual deductions worth C × current tax rate.
FV
— Future value of contributions at retirement
C
— Annual contribution
r
— Expected annual return
n
— Years until retirement
tax
— Expected marginal tax rate in retirement

Worked example

The scenario

Age 35, retiring at 65, contributing $7,000/year at a 7% return, with a 24% tax rate today and 22% expected in retirement.

gives

The result

Both accounts grow to about $661,000. The Roth is worth the full $661,000 tax-free; the Traditional is worth about $516,000 after 22% tax — a $145,000 gap. But the Traditional also produced about $50,400 in tax deductions along the way (30 × $7,000 × 24%), which narrows the true gap if invested.

Common use cases

  • Deciding where to direct this year's IRA contribution based on your tax bracket
  • Modeling a Roth conversion decision by comparing current vs. future tax rates
  • Planning tax diversification between pre-tax and after-tax retirement buckets
  • Showing early-career savers in low brackets why Roth contributions are usually favored
  • Estimating the after-tax value of an existing Traditional IRA at retirement

Limitations & assumptions

  • Assumes equal dollar contributions to both accounts; a strict apples-to-apples comparison would invest the Traditional's tax savings in a side account, which narrows the gap shown.
  • Future tax rates and brackets are unknowable — Congress changes them, and your retirement income mix matters.
  • Ignores Traditional IRA deduction phase-outs and Roth IRA income limits that may apply to high earners.
  • Does not model required minimum distributions (RMDs), state taxes, or early-withdrawal rules.

Frequently asked questions

The deciding factor is your tax rate now versus in retirement. If you're in the 24% bracket today but expect 22% or less in retirement, the Traditional deduction is worth more than the Roth's tax-free growth — provided you invest the tax savings. If you're early-career in the 12% bracket and expect higher rates later, Roth is the clear winner. Many planners recommend splitting contributions when you're unsure.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.