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Roth vs Traditional Calculator

Enter what you can put in each year before tax, how long it grows, the return, and your tax rate now and in retirement. The calculator compares the after-tax money from a Roth with a traditional account at the same take-home cost.

Your numbers

An assumption you can change, not a forecast.

Use your federal marginal rate plus state if you want.

An assumption you can change, not a forecast.

Enter it to see whether you can contribute to a Roth IRA at your income. Leave blank to skip the check.

Result

Estimate for information only, not professional advice. Last reviewed .

Tax year 2026. Tax figures last updated October 29, 2026. Sources.

How we calculate it

A traditional account takes the full pre-tax contribution, grows tax-deferred, and withdrawals are taxed at your retirement rate. A Roth takes the contribution after income tax, so the same pre-tax pay buys a smaller deposit (contribution × (1 − tax rate now)), but growth and withdrawals are tax-free.

Both use the same pay, so the comparison is fair. If the tax rate in retirement equals the rate now, the two end up the same. A lower rate later favors traditional, and a higher rate later favors Roth.

Assumptions and limits

  • Contribution limits for 2026: $7,500 for an IRA (plus $1,100 from age 50) and $24,500 for a 401(k).
  • Roth IRA income limits for 2026 (IRS Notice 2025-67): you can contribute in full below $153,000 (single) or $242,000 (married filing jointly), the limit shrinks across the next $15,000 or $10,000, and direct contributions stop above $168,000 or $252,000. The traditional IRA deduction depends on a workplace plan and is not checked. 401(k) plans have no income limit.
  • Contributions are added at the end of each year. Future tax rates and returns are unknown, so treat the result as a comparison, not a prediction.
  • Required withdrawals, early-withdrawal penalties and the tax effect of Social Security are not included.

Frequently asked questions

Which is better, Roth or traditional?

Roth tends to win when you expect a higher tax rate in retirement than now, such as early in a career. Traditional tends to win when your rate now is high and you expect a lower one later.

Why does the Roth deposit look smaller?

To compare fairly, both options use the same pre-tax pay. Income tax is paid up front on the Roth, so less goes in. The tax savings on the traditional side are what you would otherwise have paid.

Can I have both?

Yes. Many people split contributions to hedge against not knowing future tax rates. Some employers offer a Roth 401(k) next to a traditional one.

What tax rate should I use in retirement?

Estimate your taxable income in retirement and look up your bracket. Many people end up in a lower bracket than when working, but pensions, withdrawals and Social Security can raise it.

Related calculators

Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Yearly contribution, before tax ($) = 7000; Years until you withdraw = 30; Expected yearly return (%) = 7; Your tax rate now (%) = 22; Your tax rate in retirement (%) = 15; Filing status (for the Roth IRA income limit) = Single.

  • Result Traditional comes out ahead
  • Roth balance (tax-free) $515,755.89
  • Traditional balance before tax $661,225.50
  • Traditional balance after tax $562,041.68
  • Difference (Roth minus traditional) -$46,285.79
  • Roth contribution each year (same take-home cost) $5,460.00
  • Tax rate where they tie 22%

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.