Roth vs Traditional IRA Calculator
Compare Roth and Traditional retirement accounts after tax, based on your tax rate now and in retirement.
The core idea
Traditional accounts give you a tax break now and tax you when you withdraw. Roth accounts tax you now and let withdrawals be tax free. If your tax rate is higher in retirement, Roth tends to win. If it is lower, Traditional tends to win. If equal, they end up the same.
Simplifications
We assume yearly contributions at the start of each year and the same take-home cost either way. Contribution limits, income limits, employer matches and early-withdrawal rules vary by country. Check the current rules.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Young and in a low bracket: Roth often makes sense.
- High earners often prefer the upfront Traditional break.
- Splitting between both is a common hedge.
Learn more
Frequently asked questions
Is this for the US only?
The idea applies in many countries, but names and rules differ. Use your local account types.
Does it include employer match?
No. Employer matches are usually pre-tax.
What if I don't know my future tax rate?
Try several rates and consider splitting between both account types.
Money guides for this topic
All guides →Required Minimum Distributions (RMDs) Explained
What an RMD is, when it starts, how it is calculated and how to plan for it before it forces extra taxable income.
Read guide →401(k) vs Roth IRA: Which Should You Use First?
How employer match, tax treatment and flexibility compare, and a simple order for filling retirement accounts.
Read guide →Investing for Beginners: A Simple Plan with the Numbers
A plain-English starter plan for investing: low-cost index funds, regular contributions and why fees matter.
Read guide →Related calculators
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Project your 401(k) or workplace pension balance with salary growth and employer match.
Open calculator →Results are estimates and not financial advice.