Roth Ira vs Traditional IRA Calculator

Compare how your contributions differ between Roth IRA and Traditional IRA savings

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Please enter your current balance of your Roth IRA/ Traditional IRA. If you do not already have you feel free to leave it at zero. Alternitavely enter the balance you plan to start off

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Please enter your annual contribution to your Roth IRA/ Traditional IRA. For the year 2020/2021 the maximum contribution is $6,000.

Please note that the contributions are considered after tax contributions. This affects how the graph below is displayed. In reality the Traditional IRA is not taxed until the point of withdrawral

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Enter your current age

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Enter your expected age of retirement. To withdraw from the Traditional IRA you must be 59 1/2 years old. Withdrwaring earlier will result in you facing a tax penalty

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Enter the expected rate of return on your investments. We have capped the rate of return at 20% to keep this amount conservative. We reccomend choosing a rate of return between 4% and 12%

Your rate of return will vary on a year to year basis depending on how your investments build.

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Please enter your marginal tax rate. The highest marginal tax rate as of 2020/2021 is 37%. If you feel you will have a different tax rate at the point of retirement, please enter this in the advanced dropdown section

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Checking this button will add maximum contributions once you have reached the threshold age until retirement age.

In 2021/2022 this means that you are 50 years old and will contribute an extra $1000 (totaling $7000) past this age.

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Please enter your estimated tax rate for retirement. This helps us calculate how your Traditional IRA will compare to a Roth IRA at retirement age.

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IMPORTANT! The representation of the Traditional IRA would appear slightly different to this in reality. This is due to the manner in which Traditional IRA's are taxed. Rather than being taxed across the years of contributions. Traditional IRA's are not taxed until withdrawral, at which point they are taxed at your marginal tax rate.