Roth vs. Traditional IRA Calculator
Compare after-tax retirement value between a Roth and Traditional IRA.
Open the Interactive CalculatorHow It's Calculated
Both accounts grow to the same Gross Future Value = Contribution × [(1+r)n − 1] ÷ r. Roth withdrawals are tax-free. Traditional withdrawals are taxed at your future rate, but the upfront tax break can be invested too — this calculator credits that to Traditional for a fair comparison.
Example
Example: $7,000/year for 35 years at 7% growth reaches about $970,000 gross. Tax-free in a Roth, that's the full amount. In a Traditional IRA taxed at 22% at withdrawal, plus the tax savings invested at the same rate, the totals end up very close — the winner depends mainly on whether your tax rate is higher now or in retirement.
Frequently Asked Questions
So which one is actually better?
If your tax rate is the same now and in retirement, they end up mathematically equal (assuming the Traditional tax savings are invested). Roth tends to win if you expect a higher tax rate later; Traditional tends to win if you expect a lower one.
Are there income limits on Roth IRA contributions?
Yes — the IRS phases out Roth eligibility above certain income thresholds that change yearly, while Traditional IRA contributions are available to anyone with earned income (though deductibility can phase out too).