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Calculation Machine

Roth vs Traditional Calculator

Which retirement account leaves you more after tax.

Reviewed by James Whitfield · How we check our maths

Your values

ⓘ Live results

Results
Roth after-tax value
$442,743.26
Traditional after-tax value
$363,049.48
Traditional plus invested tax saving
$453,369.10
Better choice
Traditional
Difference
$10,625.84
Tax saved today with traditional
$42,000.00

Quick answer

Roth wins when your retirement tax rate is higher than today's; traditional wins when it is lower. Identical rates produce identical after-tax outcomes.

The formula

Roth = C × (1+r)^n ; Traditional = C × (1+r)^n × (1 − tax_ret)

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Annual contribution7000 $
  • Years until retirement25
  • Expected annual return7 %
  • Tax rate today24 %
  • Tax rate in retirement18 %

Result

  • Roth after-tax value$442,743.26
  • Traditional after-tax value$363,049.48
  • Traditional plus invested tax saving$453,369.10
  • Better choiceTraditional
  • Difference$10,625.84
  • Tax saved today with traditional$42,000.00

How to use the Roth vs Traditional Calculator

  1. 1Enter your annual contribution and years to retirement.
  2. 2Enter the return you expect on the account.
  3. 3Set your tax rate today and your best guess for retirement.

Frequently asked questions

Which should I pick if rates are equal?

They are mathematically identical, so pick on flexibility: Roth has no required distributions and contributions can be withdrawn penalty-free.

Why does the traditional option get a side investment?

A pre-tax contribution frees up cash today. To compare fairly, that tax saving must be invested too — otherwise the comparison flatters Roth.

About this calculator