Investing & Retirement

Roth vs Traditional IRA Calculator

Enter the yearly amount from your pay, the years, the return and your tax rates now and later.

By TheCalcTools Updated October 17, 2026 Formula checked and tested

Your numbers

CurrencySymbol only: enter amounts in the currency you pick.

Pre-tax pay put toward retirement each year

Years until retirement

Expected yearly return

Your tax rate now (federal + state)

Expected tax rate in retirement

Age 50 or older?

Your results

Traditional: after-tax value at retirement

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Roth: after-tax value at retirement

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Better choice on these assumptions

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Difference

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2026 IRA limit check

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Roth vs Traditional IRA Calculator by TheCalcTools

How the Roth vs Traditional IRA Calculator works

With the same cost to your take-home pay, a traditional account invests the full pre-tax amount and taxes withdrawals; a Roth invests the after-tax amount and withdrawals are tax-free. Growth is the same, so the better choice depends only on whether your tax rate is higher now or in retirement.

For 2026 the IRA contribution limit is $7,500, plus a $1,100 catch-up at age 50 or older (IRS Notice 2025-67). Roth eligibility phases out at higher incomes; 401(k) plans have higher limits.

The formula

Traditional = FV × (1 − tax later); Roth = FV × (1 − tax now)

Worked example

Using the default values shown in the calculator:

Pre-tax pay put toward retirement each year	$7500
Years until retirement	25
Expected yearly return	6 %
Your tax rate now (federal + state)	24 %
Expected tax rate in retirement	18 %
Age 50 or older?	No

7,500 a year for 25 years at 6% grows to about $436,173 before tax.
Traditional: $357,662; Roth: $331,491. Traditional (lower tax rate in retirement).

Result:

Traditional: after-tax value at retirement	$357,662
Roth: after-tax value at retirement	$331,491
Better choice on these assumptions	Traditional (lower tax rate in retirement)
Difference	$26,170
2026 IRA limit check	Contribution of 7500 vs the 2026 IRA limit of 7500: within the limit

Frequently asked questions

What if I expect the same tax rate?

Then they come out equal on these assumptions; other factors, like required minimum distributions and tax diversification, may decide.

Can I contribute more than $7,500 to a Roth IRA?

Not to an IRA in 2026 (unless 50 or older: $8,600). A Roth 401(k) allows much more.

Sources and further reading

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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.