Roth IRA calculator

Compare a Roth IRA with a traditional IRA. See what each could be worth after tax in retirement, based on your tax rate today and the rate you expect when you withdraw.

By OpenBookMoney Editors · Free, no sign-up · Updated Oct 18, 2026

Roth vs. traditional IRA calculator

Compare what each account could be worth after taxes, using the same pre-tax budget, so you can decide whether to pay tax now or later.

The traditional IRA invests all of it; the Roth invests what’s left after paying today’s tax.
The traditional IRA comes out ahead by $49,526 Because your tax rate is higher today than in retirement
After-tax value at retirement
Traditional IRA (after paying 15% tax)$601,385
Roth IRA (tax-free)$551,859
Traditional balance before tax $707,511
Tax due on withdrawal $106,127
Yearly Roth contribution $5,460
Break-even retirement tax rate 22%

Every five years

Year Traditional After tax Roth
5 $43,073 $36,612 $33,597
10 $103,485 $87,962 $80,718
15 $188,216 $159,984 $146,809
20 $307,056 $260,998 $239,504
25 $473,735 $402,675 $369,514
30 $707,511 $601,385 $551,859

How it’s calculated

Both accounts receive yearly contributions that grow at your return. The traditional IRA invests the full pre-tax amount and is taxed at your retirement rate when withdrawn. The Roth IRA invests the amount left after today’s tax and is withdrawn tax-free. With equal tax rates the two come out the same; the account with the lower tax rate wins.

Contribution limits, income limits and deductibility rules apply, and if you can contribute the maximum to a Roth, it effectively shelters more money. Estimates only — not tax advice.

How to use the Roth IRA calculator

  1. Enter how much of your income you’ll put toward the IRA each year, before tax, such as $7,000.
  2. Set the number of years until you withdraw and your expected annual return.
  3. Enter your tax rate today and the tax rate you expect in retirement.

You’ll see each account’s value after tax, which one comes out ahead and the balances every five years.

How the comparison works

To compare fairly, both accounts start from the same pre-tax budget:

  • Traditional IRA: the full amount goes in before tax and grows. Withdrawals are taxed at your future rate.
  • Roth IRA: you pay tax first, so less goes in, but it grows and qualified withdrawals come out tax-free.
Traditional, after tax = future value of the full amount × (1 − tax rate in retirement)
Roth = future value of (the full amount × (1 − tax rate today))

If the two tax rates are the same, both accounts end up with exactly the same amount. The Roth wins when your tax rate in retirement is higher than today; the traditional IRA wins when it’s lower.

Example: $7,000 a year for 30 years at 7%

Hypothetical: $7,000 a year of pre-tax income, a 7% annual return and a 22% tax rate today.
Tax rate in retirementTraditional IRA after taxRoth IRAComes out ahead
12%$622,610$551,859Traditional
15%$601,385$551,859Traditional
22%$551,859$551,859Neither (equal)
30%$495,258$551,859Roth

With a 22% rate today, $7,000 of income becomes $5,460 to put in a Roth. The Roth comes out ahead only if your tax rate in retirement is above 22%. Nobody knows future tax rates for sure, which is why many people keep money in both kinds of accounts.

2026 IRA limits

  • $7,500: the most you can put into all your IRAs combined in 2026, or your taxable compensation if that’s lower.
  • $1,100 extra if you’re 50 or older (the catch-up contribution).
  • Roth income limits: what you can contribute to a Roth IRA phases out between $153,000 and $168,000 of modified adjusted gross income for single filers, and between $242,000 and $252,000 for married couples filing jointly.

Limits change most years; see the IRS announcement for the official figures.

Roth IRA rules worth knowing

  • Your contributions can come out anytime without tax or penalty, because you’ve already paid tax on them. Earnings follow different rules.
  • Earnings come out tax-free in a qualified withdrawal: generally after age 59½, once your first Roth IRA has been open for five years.
  • No required minimum distributions for the original owner.
  • A traditional IRA deduction can be limited if you or your spouse have a retirement plan at work and your income is above certain levels.
  • Our Roth vs. traditional guide and 401(k) vs. IRA guide go deeper.

Frequently asked questions

Is a Roth or a traditional IRA better?

It mostly depends on your tax rate now compared with in retirement. If you expect a higher rate later, or you’re early in your career, a Roth often comes out ahead. If your rate is high today and likely to be lower later, a traditional IRA can win.

How much could my Roth IRA be worth?

At a 7% average annual return, $7,500 a year for 30 years could grow to about $758,000, of which $225,000 is money you put in. Returns aren’t guaranteed and vary from year to year.

Can I contribute to both a Roth and a traditional IRA?

Yes, but the yearly limit ($7,500 in 2026, plus $1,100 if you’re 50 or older) applies to your total across all your IRAs.

What if my income is too high for a Roth IRA?

Your allowed contribution shrinks inside the phase-out range and stops above it. Some people make a nondeductible traditional IRA contribution and convert it to a Roth, a so-called backdoor Roth. The tax rules are complex, so consider professional advice.

Does the calculator check the contribution limits?

No. It models the amount you enter, so make sure your contributions stay within the IRS limits for the year.

Estimates only, not tax or investment advice. Tax rules and limits change; check IRS guidance or ask a tax professional.