Roth vs. Traditional IRA

Compare the after-tax value of the same retirement savings budget—pay taxes now with a Roth, or later with a Traditional IRA.

Your assumptions

$

Before-tax dollars available each year; maximum $8,600.

%

%

years

Uses a 7% annual return and end-of-year contributions. The return changes the projected values, not which IRA wins under this simplified model.

Enter your contribution, tax rates, and timeline to compare after-tax outcomes.

How the comparison works

This is an equal-budget comparison. A Traditional IRA receives the full before-tax budget. A Roth receives the amount left after today’s modeled tax because Roth contributions are made with after-tax money. Both then grow at 7% per year; the Traditional balance is reduced by the retirement tax rate at withdrawal.

If your retirement tax rate is lower than today’s rate, Traditional generally leads. If it is higher, Roth generally leads. Equal rates produce the same modeled after-tax value.

What is not included

  • Income-based Roth eligibility or Traditional deduction limits
  • State taxes, required minimum distributions, early-withdrawal penalties, or changing tax rates
  • Investment fees, inflation, or tax-free Roth access rules

Last reviewed Oct. 7, 2026 · Source: IRS IRA contribution limits

For informational and educational purposes only. This calculator provides a simplified estimate and does not constitute tax, legal, or investment advice. Consider a qualified tax professional for guidance based on your situation.

Last reviewed: October 2026.