Roth IRA vs Traditional IRA calculator
Model a Roth IRA against a Traditional IRA side by side: what each is worth after tax at retirement, what the up-front deduction is really worth if you invest it, and the break-even tax rate that decides it at your income level.
$
$
30 yr
7.0%
24%
22%
Yes
Traditional IRA wins by
$166,043
Spendable money after tax at year 30
Roth: tax-free at retirement
$537,709
Funded with after-tax dollars at 24%
Traditional: after withdrawal tax
$551,859
Taxed at 22% in retirement
Side pot from the tax deduction
$151,892
After 15% capital gains on growth
- Traditional balance before tax
- $707,511
- Traditional total spendable
- $703,751
- Out-of-pocket cost per year (Roth)
- $7,000
- Out-of-pocket cost per year (Traditional)
- $5,320
- Break-even retirement tax rate
- 24%
You expect a 2% lower rate in retirement, which favours the pre-tax Traditional deduction — as long as you actually invest the refund.
How this is calculated
- · One constant return and one constant tax rate in each phase
- · Contributions are made at the start of each year and stay within IRA limits
- · Ignores income phase-outs, RMDs, state tax and early-withdrawal penalties
Estimates only — not financial, tax or legal advice.