№ 032 · Retirement cluster
Roth vs Traditional Calculator
Tax now or tax later? This calculator compares a Roth and a traditional account on an equal take-home basis — the only fair way to do it — and shows that the winner comes down to a single thing: whether your tax bracket in retirement is higher or lower than it is today.
After-tax value · bracket crossover
Capturing your employer match first? See the 401(k) Calculator, or find your bigger-picture target with the Retirement / FIRE Calculator.
Your contribution01
$
$
Tax brackets02
%
%
Growth03
%
Equal take-home cost
Traditional wins
by $17,400.68 after 30 years24% now vs 22% in retirement
Roth
After-tax value$661,225.50
$7,000.00/yr in, after tax
Withdrawn tax-free
Withdrawn tax-free
TraditionalAhead
After-tax value$678,626.18
$9,210.53/yr in, pre-tax
$870,033.56 before 22% tax
$870,033.56 before 22% tax
Crossover ratio+2.63%
Years invested30
Traditional wins by$17,400.68
- Traditional (after tax)
- Roth (tax-free)
| Year 1.0 | Traditional (after tax) $7,184.21, Roth (tax-free) $7,000.00 |
|---|---|
| Year 4.0 | Traditional (after tax) $31,897.49, Roth (tax-free) $31,079.60 |
| Year 7.0 | Traditional (after tax) $62,172.31, Roth (tax-free) $60,578.15 |
| Year 10.0 | Traditional (after tax) $99,260.27, Roth (tax-free) $96,715.14 |
| Year 13.0 | Traditional (after tax) $144,694.62, Roth (tax-free) $140,984.50 |
| Year 16.0 | Traditional (after tax) $200,353.65, Roth (tax-free) $195,216.37 |
| Year 19.0 | Traditional (after tax) $268,538.35, Roth (tax-free) $261,652.75 |
| Year 22.0 | Traditional (after tax) $352,067.55, Roth (tax-free) $343,040.17 |
| Year 25.0 | Traditional (after tax) $454,394.40, Roth (tax-free) $442,743.26 |
| Year 28.0 | Traditional (after tax) $579,749.20, Roth (tax-free) $564,883.84 |
| Year 30.0 | Traditional (after tax) $678,626.18, Roth (tax-free) $661,225.50 |
After-tax value · by year
| Year | Roth (tax-free) | Traditional (after tax) | Traditional ahead by |
|---|---|---|---|
| 1 | $7,000.00 | $7,184.21 | $184.21 |
| 2 | $14,490.00 | $14,871.32 | $381.32 |
| 3 | $22,504.30 | $23,096.52 | $592.22 |
| 4 | $31,079.60 | $31,897.49 | $817.88 |
| 5 | $40,255.17 | $41,314.52 | $1,059.35 |
| 6 | $50,073.04 | $51,390.75 | $1,317.71 |
| 7 | $60,578.15 | $62,172.31 | $1,594.16 |
| 8 | $71,818.62 | $73,708.58 | $1,889.96 |
| 9 | $83,845.92 | $86,052.39 | $2,206.47 |
| 10 | $96,715.14 | $99,260.27 | $2,545.14 |
| 11 | $110,485.20 | $113,392.70 | $2,907.51 |
| 12 | $125,219.16 | $128,514.40 | $3,295.24 |
| 13 | $140,984.50 | $144,694.62 | $3,710.12 |
| 14 | $157,853.42 | $162,007.45 | $4,154.04 |
| 15 | $175,903.15 | $180,532.18 | $4,629.03 |
| 16 | $195,216.37 | $200,353.65 | $5,137.27 |
| 17 | $215,881.52 | $221,562.61 | $5,681.09 |
| 18 | $237,993.23 | $244,256.21 | $6,262.98 |
| 19 | $261,652.75 | $268,538.35 | $6,885.60 |
| 20 | $286,968.45 | $294,520.25 | $7,551.80 |
| 21 | $314,056.24 | $322,320.88 | $8,264.64 |
| 22 | $343,040.17 | $352,067.55 | $9,027.37 |
| 23 | $374,052.99 | $383,896.49 | $9,843.50 |
| 24 | $407,236.70 | $417,953.45 | $10,716.76 |
| 25 | $442,743.26 | $454,394.40 | $11,651.14 |
| 26 | $480,735.29 | $493,386.22 | $12,650.93 |
| 27 | $521,386.76 | $535,107.47 | $13,720.70 |
| 28 | $564,883.84 | $579,749.20 | $14,865.36 |
| 29 | $611,425.70 | $627,515.86 | $16,090.15 |
| 30 | $661,225.50 | $678,626.18 | $17,400.67 |
How it works · methodology
The math, in the open.
Roth after-tax = FV(C) (tax-free) Traditional after-tax = FV(C / (1 − t_now)) × (1 − t_ret) ⇒ Traditional ÷ Roth = (1 − t_ret) / (1 − t_now) where FV(x) compounds x each year at the return r for n years
- C
- After-tax dollars you put in each year (equal take-home cost)
- t_now
- Your marginal tax rate today
- t_ret
- Your marginal tax rate in retirement
- r
- Annual investment return
- n
- Years until withdrawal
Assumptions & limits
- The comparison equalizes take-home cost: a Roth deposit of C versus a deductible traditional deposit of C ÷ (1 − t_now) the same dollars fund.
- Each phase uses a single flat marginal rate; a progressive bracket schedule, state tax, RMDs, and Social Security taxation are not modeled.
- IRS contribution limits and Roth income phase-outs are not enforced — enter amounts and rates that fit your situation.
- Contributions are made once a year and compound annually at the return. A transparent estimate, not tax advice.
By the MintNumber Editorial Team·Reviewed
Frequently asked
Questions about Roth versus traditional
How does this calculator decide between Roth and traditional?
It compares the two on an equal take-home basis — the only fair comparison. A Roth contribution is made with after-tax dollars and comes out tax-free. The same take-home money funds a larger traditional contribution, because the deduction lets you deposit your contribution divided by one minus your current rate; that pre-tax balance grows and is then taxed at your retirement rate on withdrawal. Whichever leaves more after-tax money wins.
Why does the answer come down to your tax brackets?
Because once you equalize take-home cost, the traditional account always ends up worth exactly (1 − your retirement rate) ÷ (1 − your current rate) times the Roth. Every other input — the contribution, the return, the years — scales both sides identically and cancels out. So traditional wins when your retirement bracket is lower than today’s, Roth wins when it is higher, and they tie when the two rates are equal. That single ratio is the whole story.
Doesn’t Roth always win because the money is already taxed?
That is the common trap. If you compare the same deposit — say $7,000 into each — Roth looks better, but only because you have quietly paid extra tax to fund the Roth out of pocket. The traditional contribution of the same size left tax money in your hand that the comparison ignores. Equalizing take-home cost removes that hidden advantage and reveals that the bracket comparison is what actually matters.
When does Roth make sense even if the math is close?
Roth has features this calculator does not price in: it has no required minimum distributions, contributions can be withdrawn without penalty, it is valuable if you expect tax rates to rise, and it hedges the risk that you simply do not know your future bracket. Many savers split contributions across both for exactly that diversification. Traditional shines when you are in a high bracket now and expect a lower one in retirement.
What does this calculator leave out?
A lot of real-world detail, deliberately, so the core trade-off stays clear: it uses a single flat marginal rate for each phase rather than a progressive bracket schedule, ignores state taxes, required minimum distributions, Social Security taxation, and Roth income phase-outs, and does not enforce IRS contribution limits — enter rates and amounts that fit your situation. It is a transparent estimate, not tax advice.