Finance calculator
Roth vs Traditional Calculator
See whether a Roth or Traditional IRA/401(k) leaves more after-tax retirement money.
Quick answer
Is Roth or Traditional better?
Roth is better if you expect a higher tax rate in retirement than today; Traditional is better if you expect a lower one. If the rates are the same, both end with the same after-tax money.
- Enter your yearly contribution before tax.
- Enter years until retirement and expected return.
- Enter your tax rate today and in retirement.
- See which account leaves more after tax.
Roth = FV(contribution × (1 − tax now)) • Traditional = FV(contribution) × (1 − tax in retirement)
⚡ Answer updates as you type · Enter = calculate · Esc = reset
Roth
$551,858.81
Taxed now, tax-free later
Traditional
✓ Better choice$601,384.60
Tax break now, taxed later
Both options use the same pre-tax money: Roth contributions are taxed now at today's rate, Traditional withdrawals are taxed later. A higher tax rate in retirement favors Roth; a lower one favors Traditional. Contribution limits and income limits apply.
Compare a Roth IRA or Roth 401(k) with a Traditional IRA or 401(k). See which leaves more after-tax money in retirement based on your tax rate today and your expected tax rate in retirement.
Disclaimer: This tool provides estimates for informational purposes only and is not financial advice. Please do your own due diligence and consult a qualified professional before making real-world financial decisions.
About this Roth vs Traditional Calculator
The Roth vs Traditional Calculator compares a Roth IRA or Roth 401(k) with a Traditional IRA or 401(k). It uses the same pre-tax money for both so you can see which leaves more spendable money in retirement based on your tax rate now and later.
What you'll need
- • Yearly contribution
- • Years until retirement
- • Expected return
- • Tax rate today
- • Tax rate in retirement
How it works
- 1. Enter contribution and years.
- 2. Enter expected return.
- 3. Enter both tax rates.
- 4. Read the winner and both balances.
- 5. Copy, share or download the PDF.
Worked example
$7,000 a year for 30 years at 7%, taxed 22% now and 30% later: Roth leaves more after tax.
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Roth vs Traditional Calculator FAQ
What is the Roth vs Traditional Calculator?
The Roth vs Traditional Calculator is a free online tool that helps you see whether a roth or traditional ira/401(k) leaves more after-tax retirement money.
How do I use the Roth vs Traditional Calculator?
Open the Roth vs Traditional Calculator, enter the requested values, and review the instant estimate on the page.
Is the Roth vs Traditional Calculator free?
Yes. The Roth vs Traditional Calculator is free to use on Fast Online Calculator and does not require an account.
What is the difference between Roth and Traditional?
Roth contributions are taxed now and withdrawals are tax-free later. Traditional contributions lower taxes now and withdrawals are taxed later.
Who should choose a Roth IRA?
People early in their career or in a low tax bracket today who expect higher income later often benefit most from Roth.
Can I have both a Roth and a Traditional account?
Yes. Many people split contributions to spread tax risk, within the yearly contribution limits.
Does this include income limits?
No. Roth IRA contributions have income limits and both accounts have yearly limits; check current IRS rules.
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