Traditional IRAs offer tax-deductible contributions now but taxable withdrawals later. Roth IRAs use after-tax dollars but grow and withdraw tax-free. This calculator projects both scenarios so you can compare which gives you more money in retirement based on your tax rate and contribution amount.
Roth IRA Balance:
Traditional IRA Balance:
How to Use This Tool
Enter your annual contribution amount (2024 limit: $7,000, $8,000 if age 50+).
Enter your current age and planned retirement age.
Enter your current IRA balance (if any).
Enter your expected annual return (historically 7% for index funds).
Enter your current marginal tax rate.
Click Calculate to compare Roth vs Traditional IRA outcomes.
The Formula
Both IRAs use the same compound growth formula: FV = PV x (1+r)^n + PMT x [(1+r)^n - 1] / r where PV is current balance, PMT is annual contribution, r is return rate, n is years. Roth is tax-free; Traditional is reduced by taxes at withdrawal.
Why It Matters
You are 30 years old with $50,000 in a Traditional IRA. You can contribute $7,000/year and expect 7% returns until age 65. If you switch to a Roth IRA instead, the $521,750 vs $403,400 difference comes from Roth's tax-free growth — but you pay taxes now on the $50,000 balance you are rolling over.