💰 Free Calculator

Roth vs Traditional IRA — which wins for you?

Most calculators get this wrong by ignoring the tax savings you can reinvest each year with a Traditional IRA. Ours models the full picture — giving you a fair, accurate answer in under 60 seconds.

📖 New to IRAs? Start here.
▼

Roth vs Traditional IRA Calculator

No sign-up. No data collected. Results update as you type.

📋 Optional — Check Roth Eligibility
Reinvest Traditional tax savings Models the annual tax deduction from the Traditional IRA invested at the same return rate — the correct way to make this comparison. We recommend this — it models what actually happens when you invest your annual tax refund.
Roth IRA Balance
—
Tax-free at retirement
Traditional IRA
—
After-tax at retirement
Break-Even Rate
—
Roth wins above this rate
—

📐 How we calculate this ▼
  • Traditional IRA includes reinvested tax savings — most calculators compare only the raw IRA balances, which unfairly favors Roth. Our model adds the compounded value of the annual deduction you reinvest each year, producing a fair comparison.
  • The break-even result: When reinvesting tax savings is modeled correctly, the break-even retirement tax rate equals your current marginal rate. This is the mathematically correct result — it means the decision reduces to one question: will you be in a higher or lower tax bracket at retirement?
  • Assumptions: Consistent marginal rates throughout accumulation; full contribution every year; no state income taxes; Traditional deductibility assumed (phases out with income + workplace plan — not modeled); 7% default return is a long-run real equity market estimate. Contributions are assumed made at end of each year (ordinary annuity). Some calculators assume beginning-of-year, which produces balances approximately one return-rate percent higher — neither is wrong, they model different timing assumptions.
  • Official rules: IRS Publication 590-A →
For informational purposes only. Not financial advice. Results assume consistent annual contributions, constant return rates, and full Traditional IRA deductibility. State income taxes not modeled. Actual outcomes depend on market performance, tax law changes, and individual circumstances. Consult a qualified financial advisor before making major decisions.
More Tools

Related Calculators

📈

Compound Interest Calculator

See how your retirement savings grow over time and what expense ratios silently cost you.

 📊

Savings Rate Calculator

Find your savings rate, compare to your generation, and calculate your FIRE timeline.

 🔥

RetireSmart — Full Retirement Planner

Monte Carlo simulation, income events, healthcare costs, and year-by-year retirement planning.

Ready for your full retirement picture?

This calculator shows which account wins. RetireSmart models your entire retirement — income, spending, Monte Carlo confidence, and when you can actually stop working.

Try RetireSmart Free →

Explore All Free Calculators

Debt payoff, compound interest, budget planning, savings rate — all free, no sign-up required.

View All Tools →