Roth IRA Calculator
Project your Roth balance and compare Roth vs Traditional using a fair, tax-adjusted comparison.
Projection
Roth IRA balance at retirement
$0
Total contributions
$0
Investment growth
$0
Years invested
—
Traditional (after tax)
$0
Roth vs Traditional
Both accounts let your money grow tax-free, but they tax it at different times:
- Roth: contribute after-tax, withdraw tax-free in retirement.
- Traditional: contribute pre-tax (lowers today's tax bill), withdraw and pay ordinary income tax in retirement.
The fair comparison
If you put $7,000 into a Roth, you spent $7,000 after-tax. Putting the same $7,000 into a Traditional IRA only costs you ${7000 * 0.78} after-tax (at a 22% bracket). To compare them fairly, the Traditional version should contribute the pre-tax equivalent — about $8,974/yr — so out-of-pocket cost is equal.
The "Traditional (after tax)" row above shows the fair comparison: pre-tax contributions grown to retirement, then taxed at withdrawal.
Which wins?
- Same tax rate now and in retirement? They tie mathematically.
- Tax rate higher in retirement? Roth wins (you locked in today's lower rate).
- Tax rate lower in retirement? Traditional wins (you deferred at a higher rate).