{
  "slug": "roth-vs-traditional",
  "title": "Roth vs Traditional IRA Calculator",
  "heading": "Roth vs Traditional IRA Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/roth-vs-traditional",
  "summary": "After-tax value of each account type side by side.",
  "description": "Traditional gives you the deduction now and taxes withdrawals later. Roth taxes you now and pays out clean. Which wins depends on your tax rate then vs now.",
  "formula": "Roth after-tax = FV. Traditional after-tax = FV × (1 − retirement rate)",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=roth-vs-traditional",
  "inputs": [
    {
      "id": "annual",
      "label": "Annual contribution",
      "kind": "number",
      "hint": null,
      "default": 7000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "years",
      "label": "Years invested",
      "kind": "number",
      "hint": null,
      "default": 30,
      "unit": null,
      "min": 1,
      "max": 60
    },
    {
      "id": "rate",
      "label": "Annual return",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": "%",
      "min": 0,
      "max": 20
    },
    {
      "id": "nowTax",
      "label": "Tax rate today",
      "kind": "number",
      "hint": null,
      "default": 24,
      "unit": "%",
      "min": 0,
      "max": 60
    },
    {
      "id": "laterTax",
      "label": "Tax rate in retirement",
      "kind": "number",
      "hint": null,
      "default": 22,
      "unit": "%",
      "min": 0,
      "max": 60
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Better option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "roth",
      "label": "Roth after-tax value",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "trad",
      "label": "Traditional after-tax value",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Difference",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "gross",
      "label": "Pre-tax balance",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual contribution: 7000 $",
      "Years invested: 30",
      "Annual return: 7 %",
      "Tax rate today: 24 %",
      "Tax rate in retirement: 22 %"
    ],
    "outputs": [
      "Better option: Roth wins",
      "Roth after-tax value: $661,226",
      "Traditional after-tax value: $566,156",
      "Difference: $95,070",
      "Pre-tax balance: $661,226"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual contribution ($).",
      "Enter years invested.",
      "Enter annual return (%).",
      "Enter tax rate today (%).",
      "Enter tax rate in retirement (%).",
      "Read your better option on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "annual": 4000,
        "years": 18,
        "rate": 7,
        "nowTax": 14,
        "laterTax": 13
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "annual": 7000,
        "years": 30,
        "rate": 7,
        "nowTax": 24,
        "laterTax": 22
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "annual": 11000,
        "years": 48,
        "rate": 7,
        "nowTax": 38,
        "laterTax": 35
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the roth vs traditional ira calculator work?",
      "a": "Traditional gives you the deduction now and taxes withdrawals later. Roth taxes you now and pays out clean. Which wins depends on your tax rate then vs now. The underlying maths is: Roth after-tax = FV. Traditional after-tax = FV × (1 − retirement rate)"
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: annual contribution, years invested, annual return, tax rate today, and tax rate in retirement. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the better option result mean?",
      "a": "It is returned as a plain value and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Roth vs Traditional IRA Calculator (https://www.revenuelab.fyi/toolbox/roth-vs-traditional)"
}