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Traditional vs Roth IRA Calculator

Compare Traditional and Roth IRA outcomes side-by-side. Adjust your current tax bracket vs your expected retirement bracket and see which actually leaves you with more spendable money.

Last reviewed: · Reviewed by the Money Scale editorial team · How we source our data

Power mode. Every input exposed, every assumption sourced, charts and shareables.

Traditional vs Roth IRA
Compare after-tax spendable retirement balances side-by-side. The honest comparison reinvests the Traditional IRA's tax refund into a taxable account — most articles skip this and overstate Roth's edge.

$7,500 / year

24% (federal marginal)

22% (estimated)

7%

Age 30

Retire at 65

Winner (after-tax spendable in retirement)

Roth wins by $36,385

Roth (spendable)

$1,125,659

Traditional (basic)

$878,014

After 22% retirement tax

Trad + reinvested refund

$1,089,274

Apples-to-apples

Roth (after-tax)Traditional (basic)Trad + reinvested refund$0K$300K$600K$900K$1.2M
  • Spendable
Why the third bar matters: When you contribute to a Traditional IRA, you get a tax refund equal to your contribution × your current bracket ($1,800 per year here). An apples-to-apples comparison invests that refund somewhere — usually a taxable account. If you spend the refund instead, the "basic" Traditional number is the right comparison. Most online articles skip this nuance.
Money Scale
Traditional vs Roth IRA
MONEY SCALE

🟢 Roth: $1,125,659

Contributing $7,500/year for 35 years at 24% bracket now → 22% in retirement.

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The Traditional vs Roth IRA Calculator shows THREE after-tax outcomes side-by-side — the Roth balance (fully spendable), the Traditional balance after retirement income tax, AND the Traditional balance + a separate taxable account funded with the annual tax refund the Traditional generates. The third number is the apples-to-apples comparison most articles skip and that flips the conclusion for many high-bracket savers.

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  • Sourced defaultsStarting rates and assumptions cite real data, not made-up numbers.

How this calculator works

  1. Enter your annual IRA contribution amount (2026 limit is $7,500; $8,600 if 50+).
  2. Set your CURRENT marginal federal tax bracket. This is the rate the Traditional contribution would have been taxed at this year.
  3. Set your EXPECTED retirement tax bracket. Most people assume slightly lower, but if you've saved aggressively or expect future rates to rise, similar or higher is realistic.
  4. Pick expected return (7% is a reasonable long-run default).
  5. Compare the three bars. The apples-to-apples comparison (Traditional + reinvested refund) is the honest one — but only if you actually save the refund instead of spending it.

Roth_after_tax = FV_after_growth Trad_after_tax = FV × (1 − retire_bracket) Trad+refund = Trad_after_tax + refund × (1 + r)^t

Three parallel future values. Roth grows tax-free; Trad grows the same but gets taxed on withdrawal; Trad+refund adds the parallel taxable-account growth funded by the up-front tax savings. Only the third comparison is apples-to-apples in terms of after-tax wealth at retirement.

FV
Future value of the IRA balance (same growth for both)
retire_bracket
Marginal tax bracket in retirement
refund
Annual tax refund the Traditional contribution generates (contribution × current bracket)
r
Net return on the taxable-account refund (slightly lower than IRA return due to tax drag)
t
Years to retirement

Frequently asked questions

Traditional IRA = tax deduction now, taxed on withdrawals in retirement. Roth IRA = no deduction now, but withdrawals (including all growth) are tax-free in retirement.

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Sources
Every default value is sourced. Verify anything.
National Avg Savings APY — 0.38% (as of May 2026)FDIC National Rates and Rate Caps High-Yield Savings (typical) — 4% (as of May 2026)FDIC National Rates + reported HYSA APY (top online banks) S&P 500 — 10% (as of 2026 (1928–2025 dataset))NYU Stern (Damodaran) — S&P 500 Annual Returns 1928–2025 Total US Stock Market — 9.7% (as of 2026)CRSP US Total Market Index (long-run avg) 10-Year Treasuries — 4.5% (as of May 2026)Federal Reserve FRED — 10-Year Treasury (DGS10) US Real Estate — 4.2% (as of 2026)S&P CoreLogic Case-Shiller US National Home Price Index (FRED) Gold — 7.8% (as of 2026)World Gold Council historical price data Long-run CPI Inflation — 3% (as of 2026)Bureau of Labor Statistics — CPI-U (long-run avg) 30-Year Fixed Mortgage — 6.36% (as of May 2026)Freddie Mac PMMS — 30-Year Fixed Rate Mortgage Average Credit Card APR (avg, accounts assessed interest) — 21.52% (as of May 2026 release (March 2026 data))Federal Reserve G.19 — Consumer Credit Auto Loan (60-month new car, avg) — 7.52% (as of May 2026 release (March 2026 data))Federal Reserve G.19 — Consumer Credit Personal Loan (24-month unsecured, avg) — 11.4% (as of May 2026 release (March 2026 data))Federal Reserve G.19 — Consumer Credit Federal Direct Subsidized/Unsubsidized (Undergrad) — 6.52% (as of AY 2026-27)US Dept of Education — Interest Rates and Fees for Federal Student Loans HELOC (typical introductory rate) — 7.26% (as of May 2026)Bankrate — Current HELOC Rates 12-month CD (top online rate, typical) — 4.1% (as of May 2026)FDIC + reported top online CD rates Mortgage Refinance Closing Costs (typical) — 3% (as of 2026)Freddie Mac — Cost of Refinancing College Tuition Inflation (long-run avg) — 4% (as of AY 2025-26 (Nov 2025 publication))College Board — Trends in College Pricing 2025