Tools
Roth vs. Traditional IRA Calculator
The core question behind the Roth vs. Traditional decision is simple: would you rather pay taxes now, or later? This calculator projects the after-tax value of each path at retirement based on your situation, so you can see which answer the math favors.
Projected after-tax value at age 65
Contributing $6,160/yr (same out-of-pocket cost). Withdrawals tax-free.
Contributing $7,000/yr, after 12% tax on withdrawal.
Based on your inputs, the two paths land in essentially the same place. Your estimated marginal tax rate is 12% both today and in retirement, so the math is a wash. Other factors tip the scale: the Roth has no required withdrawals and lets you access contributions anytime.
This comparison holds your out-of-pocket cost equal. A $7,000 Traditional contribution is tax-deductible, so it reduces your take-home pay by the same amount as a $6,160 Roth contribution.
How this works, and what it assumes
- Equal out-of-pocket cost. A Traditional contribution is tax-deductible, so contributing $7,000 to it costs less take-home pay than contributing $7,000 to a Roth. To keep the comparison fair, the calculator gives each path the same out-of-pocket cost, which is why the Roth contribution shown is smaller. This is the standard way to compare the two.
- Tax rates are estimated from 2026 federal brackets using your income, filing status, and the standard deduction. Your marginal rate (the rate on your last dollar of income) is used for both the deduction today and the withdrawal tax later. State taxes aren't included — factor in your own state's rate if one applies.
- It assumes your Traditional contribution is fully deductible. If you're covered by a workplace retirement plan and earn above the Traditional IRA deduction phaseout, your contribution may not be deductible, which shifts the decision toward the Roth beyond what this tool shows.
- Nobody knows future tax rates. The projection assumes today's brackets stay the same, which is the standard simplifying assumption. Congress can and does change them.
- Steady annual returns, no early withdrawals. Real markets don't return the same amount every year. The default 7% is a common long-term planning estimate, and you can adjust it.
This calculator is for educational purposes only and does not constitute personalized financial advice.