Roth vs Traditional Calculator

See whether paying tax now (Roth) or later (traditional) leaves you with more to spend in retirement.

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Amounts in dollars.
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Better choice
Traditional: after tax at retirement
Roth: after tax at retirement
Rule of thumb
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Roth vs Traditional: the Math

Traditional after tax = contributions × growth × (1 − tax rate in retirement)
Roth after tax = contributions × (1 − tax rate now) × growth

Because multiplication order doesn’t matter, the only difference is which tax rate applies. If the rates are equal, the results are equal.

Worked Example

Tips

This compares equal pre-tax effort. In practice, a Roth lets you shelter more when you max out the contribution limit, has no required minimum distributions for the owner, and adds tax diversification. Income limits apply to Roth IRA contributions.