IRA (Individual Retirement Account) / Roth IRA Calculator

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.

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.