Tax strategy comparison
Roth IRA Calculator — Should You Choose Roth or Traditional?
Quick answer: This Roth IRA calculator compares Roth and Traditional IRA outcomes side by side, using your current tax rate, expected retirement tax rate, annual contribution, and growth rate.
Enter your numbers below to see which option may leave you with more after-tax retirement income.
A lot of IRA calculators stop at growth and skip the decision that actually matters: should you pay taxes now or later? This page is built around that tradeoff. Roth means no deduction now but tax-free qualified withdrawals later. Traditional means a deduction now, tax-deferred growth, and taxes when you take the money out. The better choice depends on your personal tax-rate path, not just on the investment return.
Roth IRA Calculator
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Compare Roth and Traditional IRA outcomes side by side
Enter your contribution, age, tax rates, and expected return. The result updates live and highlights which route may leave you with more after-tax retirement income.
Side-by-side comparison
Planning estimate only. This comparison focuses on contribution growth and tax-rate differences. It does not fully model IRA income phaseouts, traditional IRA deductibility rules, or taxable investing of upfront tax savings.
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How the Roth vs Traditional decision usually works
A Roth IRA usually looks stronger when your current tax rate is lower than what you expect to face in retirement. In that case, paying tax now may be cheaper than paying it later, and qualified Roth withdrawals can preserve more of the final balance.
A Traditional IRA often becomes more appealing when your current tax rate is meaningfully higher than your expected retirement tax rate. Then the deduction today is more valuable than the tax you expect to pay later.
When the two tax rates are very close, the choice can come down to flexibility, eligibility, and preference for tax certainty rather than pure math.
What this page does and does not compare
- It compares Roth tax-free withdrawals with Traditional after-tax withdrawals.
- It shows the current-year tax savings of a Traditional contribution.
- It does not fully model Roth IRA income phaseouts or Traditional IRA deductibility rules.
- It does not assume you invest the Traditional tax deduction in a separate taxable account.
Frequently Asked Questions
Many savers lean Roth in that situation because paying tax at a lower current rate can be better than paying tax later at a higher rate.
Traditional often looks better when your current tax rate is higher than your expected retirement rate, because the deduction today can be more valuable than the tax you expect to pay later.
For 2025, the general IRA contribution limit is $7,000, or $8,000 if you are age 50 or older by the end of the year.
No. This tool focuses on the tax-treatment comparison and growth math, not full MAGI eligibility testing or deduction phaseout rules.
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