Roth vs Traditional Calculator

How to compare Roth and traditional accounts

1. Enter the yearly amount you would contribute before tax.
2. Enter the years, return, your tax rate now and your expected tax rate in retirement.
3. See which account leaves more after tax.

Frequently asked questions

What decides the winner?

Mostly the two tax rates. If your tax rate in retirement will be lower than today, traditional usually wins; if it will be higher, Roth usually wins; if they are the same, they come out equal.

What is the difference between Roth and traditional accounts?

Traditional contributions go in before tax and withdrawals are taxed. Roth contributions go in after tax and qualified withdrawals are tax-free.

Can I use both?

Yes. Many people split their contributions between the two, which spreads the risk of guessing their future tax rate wrong.