Roth vs Traditional Calculator
Roth vs Traditional Calculator
Pay tax now, or pay tax later?
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Traditional: after-tax value at withdrawal
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Roth: after-tax value at withdrawal
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Result
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Both, in today's money
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Traditional vs Roth, inflation-adjusted
Compares the same pre-tax dollar amount either way: Traditional invests it all pre-tax and pays tax on the full grown amount at withdrawal; Roth pays tax on it today (at your current rate) and invests what is left, tax-free at withdrawal. Mathematically, if your tax rate is the same both now and in retirement, the two are identical -- the deciding factor is really whether you expect your tax rate to be higher or lower in retirement than it is today, which nobody can know for certain.