Roth IRA vs. Traditional IRA Calculator
Should you contribute to a Roth IRA or a Traditional IRA? The right choice can make a significant difference in how much money you have available during retirement.
With a Traditional IRA, contributions may be tax-deductible, and investment growth is tax-deferred. Withdrawals in retirement are generally taxable.
With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free.
Which IRA Is Better for Your Retirement?
The answer depends largely on your tax rate today compared to what you expect to pay in retirement.
Use our free Roth IRA vs. Traditional IRA Calculator to compare the potential after-tax value of each option based on your contributions, investment returns, and expected retirement tax rate.
For a more complete analysis, WealthTrace Retirement Planning Software lets you model changing federal and state taxes, required minimum distributions (RMDs), and Roth conversions throughout retirement. You can also see how different strategies affect your long-term retirement outlook.
Start a free trial to find the right strategy for your retirement plan.
Roth IRA vs. Traditional IRA Calculator
Compare how income taxes today versus in retirement can affect the after-tax value of IRA savings. Adjust the assumptions to see how the results change.
Your assumptions
Projected after-tax value at retirement
Illustrative projections, not a recommendation. Assumes constant investment returns, qualified tax-free Roth distributions, fully deductible traditional contributions, and the specified tax rates. Does not check income eligibility, contribution limits, early withdrawal penalties, required minimum distributions, or detailed capital-gains taxation.
View year-by-year comparison
| Age | Roth IRA | Traditional IRA (after tax) | Invested tax savings |
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See how Roth and traditional IRAs fit into your retirement plan
WealthTrace lets you compare retirement accounts, Roth conversions, taxes, Social Security and future income needs in one comprehensive retirement projection.
Start a free trialRoth IRA vs. Traditional IRA Calculator Definitions
Current Age
Your age today. This helps determine how many years your investments can grow before retirement.
Annual Contribution
The amount you plan to contribute to an IRA each year.
For 2026, the combined annual contribution limit for Traditional and Roth IRAs is $7,500, plus an additional $1,100 for individuals age 50 or older, subject to eligibility requirements.
This calculator assumes contributions are made at the beginning of each year. It does not determine whether you qualify to make Roth IRA contributions or deduct Traditional IRA contributions.
Expected Rate of Return
The average annual investment return you expect to earn.
The calculator assumes returns are compounded annually. Actual investment returns will vary.
Retirement Age
The age at which you plan to retire and stop making IRA contributions.
For example, if you retire at age 65, the calculator assumes your final contribution occurs at age 64.
Current Tax Rate
Your current marginal federal and state income tax rate.
This rate helps estimate the potential tax savings from making deductible Traditional IRA contributions.
Retirement Tax Rate
Your expected marginal income tax rate when you withdraw money during retirement.
This is an important factor in comparing Roth and Traditional IRAs. Roth contributions may be more attractive when your retirement tax rate is higher, while deductible Traditional IRA contributions may be more attractive when your retirement tax rate is lower.
Total Contributions
The total amount you contribute to your IRA between your current age and retirement.
Traditional IRA After-Tax Value
The projected value of your Traditional IRA after accounting for estimated income taxes on withdrawals.
The comparison also considers the potential value of investing the tax savings from deductible Traditional IRA contributions, based on the calculator's assumptions.
Roth IRA After-Tax Value
The projected value of your Roth IRA at retirement, assuming qualified withdrawals are tax-free.
Generally, tax-free treatment of Roth IRA earnings requires satisfying the five-tax-year rule and meeting an additional qualifying condition, such as reaching age 59½.
Important Calculator Assumptions
This calculator provides an illustrative comparison using constant annual investment returns and estimated tax rates.
It does not determine IRA contribution eligibility, Traditional IRA deduction eligibility, or your actual future tax liability. Consult a qualified tax professional regarding your individual circumstances.
See if a Roth IRA makes sense for you
Compare your current and future tax picture in WealthTrace.
