Roth vs Traditional 401(k) Calculator — Which Wins?
Compare the after-tax retirement value of Roth vs Traditional contributions based on your tax rate now vs in retirement — and see the break-even. ✓ After-tax compare
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Roth vs Traditional
After-tax value • Break-even
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Enter your plan to compare Roth vs Traditional
Winner
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Roth (after-tax)
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Traditional (after-tax)
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After-tax retirement value
How the Roth vs Traditional Calculator Works
Enter your contribution, years, and return.
Set your tax rate now and in retirement.
See the after-tax value of each — the only fair comparison — and which wins.
Roth vs Traditional: The Honest Comparison
The whole decision comes down to one thing: your tax rate now vs in retirement. A Traditional 401(k)/IRA deducts contributions today and taxes withdrawals later. A Roth is funded with after-tax dollars and grows tax-free. Comparing the same pre-tax contribution, the after-tax result is simply: Traditional = future value × (1 − retirement rate); Roth = future value × (1 − today's rate).
So Roth wins if your tax rate will be higher in retirement (or you're young/low-bracket now); Traditional wins if your rate will be lower later. When the rates are equal, they tie. Many people split contributions to hedge. Estimate only; not tax advice.
Roth vs Traditional FAQ
Roth is better if your tax rate in retirement will be the same or higher than today; Traditional is better if it will be lower. Young savers and those in low brackets usually favor Roth.
A Traditional balance still owes taxes at withdrawal, while a Roth doesn't — so comparing pre-tax balances is misleading. The after-tax value is the true apples-to-apples figure.
Yes — many savers split contributions between Roth and Traditional to diversify their future tax exposure, since nobody knows future tax rates for certain.