IRA Calculator
Compare Traditional vs Roth IRA growth: enter your annual contribution, years, and return to see the future value and what each is worth after taxes.
The same contribution grows to the same pre-tax balance in either IRA — the difference is entirely tax treatment. This calculator shows the future value side by side, then applies your expected retirement tax rate to show what the Traditional IRA is actually worth after taxes versus the tax-free Roth.
How to use this calculator
- Enter your planned annual IRA contribution.
- Enter how many years the money will stay invested.
- Enter your expected annual return.
- Enter your expected marginal tax rate in retirement.
- Click Calculate to compare the Roth (tax-free) and Traditional (after-tax) values.
The formula
FV = contribution×((1+r)^n−1)/r; Traditional after-tax = FV×(1−retirement tax rate); Roth after-tax = FV
Worked example
Contributing $7,000 per year for 30 years at 7% grows to $661,225.50. In a Roth that's all yours; in a Traditional IRA taxed at 22% in retirement, you'd keep about $515,755.89 after taxes.
Frequently Asked Questions
What is the difference between a Traditional and Roth IRA?
Traditional IRA contributions are typically tax-deductible now, but withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are made with after-tax dollars, but qualified withdrawals — including all growth — are completely tax-free. For the same contribution and return, the pre-tax growth is identical; only the tax bill differs.
Which is better if I expect to be in a lower tax bracket in retirement?
Usually the Traditional IRA. You deduct contributions at today's higher rate and pay tax at a lower rate later, which leaves more in your pocket. This calculator lets you plug in both rates and see the dollar difference for your situation.
What are the IRA contribution limits?
For 2025, the limit is $7,000 per year ($8,000 if you're 50 or older), and it generally adjusts for inflation each year. The limit applies across all your IRAs combined, not per account. Check the current IRS figures before contributing, since exceeding the limit triggers penalties.
Can I contribute to an IRA if I have a 401(k)?
Yes. Having a 401(k) doesn't stop you from contributing to an IRA, though it can affect whether your Traditional IRA contributions are deductible depending on your income. Roth IRA eligibility also phases out above certain income levels. When in doubt, check the IRS income thresholds for the current year.
What return should I assume for an IRA?
IRAs are usually invested in stock and bond funds, so 6–8% nominal is a common long-term planning range for a diversified portfolio. Your actual return depends on your asset allocation. Running the calculator at a conservative 5% shows what happens if markets underperform.