Roth vs Traditional Calculator
Compare Roth and traditional contributions.
Pay tax now or later?
A traditional account defers tax until withdrawal; a Roth taxes contributions now but grows tax-free. Which wins depends mostly on whether your tax rate is higher now or in retirement.
The rule of thumb: choose Roth if you expect a higher tax rate in retirement than today, and traditional if you expect a lower one, though diversifying across both hedges the uncertainty.
An estimate, not advice
Real outcomes hinge on future tax law and income, so consult a professional. The figures you enter stay in the browser and are never uploaded.
Frequently asked questions
How does it compare Roth and traditional?
Roth: the contribution is taxed now at your current rate, then grows tax-free. Traditional: the full contribution grows, then is taxed at your future rate. $7,000 with a 3x growth multiple gives $15,960 Roth versus $17,220 traditional at 24% now and 18% later.
What does the growth multiple mean?
How many times the money grows before you withdraw it. 3 means it triples; at about 7% a year, that takes roughly 16 years.
Why does the tax rate difference decide it?
With the same growth, the account taxed at the lower rate wins. Expecting a lower rate in retirement favors traditional; a higher rate favors Roth.
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