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Honest Figures

Saving & investing

Roth vs Traditional Calculator

Set aside the same after-tax money either way and the winner depends on tax rates. With equal rates now and later, a Roth ends near $606,438 and a Traditional near $606,438, which is about the same. Change either rate below and the gap opens up. The honest way to compare is in after-tax dollars, since a Traditional balance still owes tax and a Roth does not. That is what this does.
After-Tax Value
Roth
is roughly even here
30
22%
22%
Roth, after tax$606,438
Traditional, after tax$606,438
Difference$0

It is a bet on your future tax rate

Both accounts let your money grow without yearly taxes. The only real difference is when you pay: a Roth taxes the money going in, a Traditional taxes it coming out. So the whole decision is a guess about whether your tax rate will be higher or lower in retirement. Early in your career, when your rate is often low, a Roth is a common pick. Later, in your peak earning years, the upfront tax break of a Traditional can be worth more. Many people hold both, which also gives them flexibility later. When today's rate and your future rate are equal, the math says it barely matters.

Compares equal after-tax cost at a steady 7% return. Contribution limits and eligibility rules apply. Not financial advice.

IRS · 2026
37%
top federal rate, from $640,600 (single)

The first dollars are taxed at 10%. Only income above each cutoff moves up a rate.

See your effective rate

Common questions

Is Roth or Traditional better?

It depends on your tax rate now versus in retirement. Roth wins if you expect to be taxed more later, Traditional wins if you expect less. Equal rates end up about the same.

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