Roth vs Traditional IRA Calculator
Free · no sign-up · reviewed July 2026
Roth or Traditional? Both are great retirement accounts; the difference is when you pay tax. A Roth is funded with money you've already been taxed on and comes out tax-free. A Traditional gives you a tax break now and is taxed when you withdraw.
This compares the after-tax value of each, assuming the same cost to you today, so you can see which one actually leaves you with more.
Drag to adjust
Which comes out ahead
It's basically a tie
Same after-tax result at these tax rates
💡 At the same tax rate now and in retirement, the two are mathematically identical. The tie-breakers are flexibility: a Roth has no required withdrawals, and your contributions can come out penalty-free.
$661,226
Roth (after-tax)
tax-free at withdrawal
$661,226
Traditional (after-tax)
taxed at withdrawal
$0
Difference
after taxes
- Roth (after-tax)$661,226
- Traditional (after-tax)$661,226
- Roth after-tax value
- $661,226
- Traditional after-tax value
- $661,226
- Difference
- $0
- Your tax rate now
- 22%
- Tax rate in retirement
- 22%
The 2-minute guide
It comes down to your tax rate
If your tax rate will be higher in retirement than it is now, the Roth usually wins: pay tax at today's lower rate and never again. If your rate will be lower later, the Traditional usually wins: skip tax now at your high rate and pay less later. Same rate both times and they tie.
Why we assume the same cost today
A dollar in a Roth is already taxed, while a dollar in a Traditional is pre-tax. To compare fairly, this calculator matches what leaves your pocket today, so a Traditional contribution is scaled up by your tax break. That's the apples-to-apples version.
Roth's hidden perks
Beyond the math, a Roth has no required minimum distributions, and you can withdraw your contributions (not the growth) anytime without penalty. That flexibility makes many people lean Roth when the numbers are close.
Many people do both
Splitting contributions between Roth and Traditional hedges your bet against unknown future tax rates and gives you flexible pots to draw from in retirement. You don't have to pick just one.
Frequently asked questions
Is a Roth or Traditional IRA better?
It depends on your tax rate now versus in retirement. Roth wins if you'll be in a higher bracket later; Traditional wins if you'll be lower. At equal rates they're mathematically identical, so Roth's extra flexibility often breaks the tie.
What's the actual difference between them?
Timing of taxes. A Roth is funded with after-tax money and withdrawals are tax-free. A Traditional is funded with pre-tax money (a deduction now) and withdrawals are taxed as income in retirement.
Should young people choose Roth?
Often yes. Early in a career your tax rate tends to be lower than it will be later, so paying tax now at that lower rate and growing everything tax-free for decades is a strong combination.
Can I contribute to both?
Yes, as long as your combined contributions stay within the annual IRA limit. Many people split between the two to diversify their future tax exposure.
Related calculators
Embed this calculator
Free to use on your own site. Paste this where you want it to appear:
<iframe id="calcwise-roth-vs-traditional-calculator" src="https://calcwisehq.com/embed/roth-vs-traditional-calculator" title="Roth vs Traditional IRA Calculator by CalcWise" width="100%" height="640" style="border:0;max-width:600px;width:100%" loading="lazy"></iframe>
<script>window.addEventListener("message",function(e){if(e&&e.data&&e.data.type==="cw-embed-height"&&e.data.slug==="roth-vs-traditional-calculator"){var f=document.getElementById("calcwise-roth-vs-traditional-calculator");if(f){f.style.height=e.data.height+"px"}}});</script>
<p style="font:13px/1.4 system-ui,sans-serif;text-align:center;margin:6px 0">Powered by <a href="https://calcwisehq.com/calculators/roth-vs-traditional-calculator" target="_blank" rel="noopener">CalcWise</a></p>The little “Powered by CalcWise” link keeps it free. Thanks for the credit!