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Roth vs Traditional calculator

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Compare a Roth and a Traditional account (IRA or 401(k)) at the same cost to your take-home pay. It comes down to two numbers: your tax rate now and your tax rate when you take the money out.

Key facts

Tax rate lower later? Traditional comes out ahead in the math.
Tax rate higher later? Roth comes out ahead.
Same rate? They come out the same.
Nobody knows future tax rates for sure, so this shows the trade-off, not an answer.

Roth or Traditional?

Amount per year ($)

Your tax rate now (%)

Your tax rate in retirement (%)

Years until you take it out

$27,432.24

more with Traditional, under these numbers

Traditional, after tax

$241,403.85

Roth, after tax

$213,971.61

Roth puts in each year

$3,900.00

Your tax rate later is lower than now in these numbers, so Traditional ends up ahead.

Show the math

Traditional: $5,000.00 a year goes in before tax
Roth: same take-home cost, so $5,000.00 − 22% tax ($1,100.00) = $3,900.00 a year goes in
Both grow 6% a year for 25 years
Traditional at the end: $274,322.56 − 12% tax ($32,918.71) = $241,403.85
Roth at the end: $213,971.61, no tax on qualified withdrawals
Difference: $27,432.24 more with Traditional

More options

Growth is the same for both, so it changes the dollar amounts but not which one comes out ahead.

Growth per year (%), an example, not a promise

Three examples: $5,000 a year for 25 years at 6%

Tax rate now → later	Traditional, after tax	Roth	Result
22% → 12%	$241,403.85	$213,971.61	$27,432.24 more with Traditional
12% → 22%	$213,971.60	$241,403.84	$27,432.24 more with Roth
22% → 22%	$213,971.60	$213,971.61	About the same under these numbers

Why: with the same take-home cost, Traditional's end value is A × growth × (1 − later rate), and Roth's is A × (1 − rate now) × growth. The growth is the same, so only the two tax rates decide it. Cents can differ a little from rounding each year.

What this leaves out

Roth IRA income limits and Traditional IRA deduction limits (see the IRA guide).
State tax, and how retirement income can make Social Security taxable or raise Medicare premiums.
Required withdrawals from traditional accounts at 73; Roth IRAs have none while you're alive.
Employer match: it goes in either way. A Roth 401(k) follows the same 401(k) limits (IRS Roth 401(k) FAQ).

Not sure of your rate now? See the 2026 federal tax brackets (Rev. Proc. 2025-32).

Sources

IRS Publication 590-A: IRA contributions (Worksheet 2-2, deadlines, conversions, no recharacterization) (checked October 21, 2026)
IRS Publication 590-B: IRA distributions (qualified Roth distributions, 5-year rules, RMDs at 73, pro-rata example) (checked October 21, 2026)
IRS: Roth IRAs (checked October 21, 2026)
IRS: FAQs on designated Roth accounts (Roth 401(k)) (checked October 21, 2026)
IRS Rev. Proc. 2025-32: 2026 tax rate schedules and standard deduction (checked October 21, 2026)

Next step: look up your 2026 bracket, try a lower and a higher guess for your retirement rate, and see how much the answer moves. Then read the IRA guide or the 401(k) basics.

Education only, not investment, tax or legal advice. We show IRS rules and do math on the numbers you type; we don't tell you what to buy or which account to pick. Your plan's own rules (its summary plan description) can be stricter. No company pays to be on this page, and there are no partner links.

FAQ

Is Roth or Traditional better?

In the math, it depends on your tax rate now versus when you take the money out. At the same take-home cost, a lower rate later favors Traditional, a higher rate later favors Roth, and equal rates come out the same.

Does growth change which one wins?

No. Both grow at the same rate, so growth changes the dollar amounts but not which comes out ahead.

Does this work for a Roth 401(k)?

Yes, the same math applies to a Roth 401(k) versus a traditional 401(k). The employer match goes in either way.

Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.

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