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Traditional vs. Roth IRA Optimizer. Compare after-tax retirement value for the same gross annual contribution. Interactive Mengira financial calculator with deterministic math: inputs are processed client-side, results update reactively, formulas documented in the on-page explainer.
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Traditional vs. Roth IRA Optimizer

Compare after-tax retirement value for the same gross annual contribution.

32
65
$7,000

2024 IRA limit: $7,000 ($8,000 if 50+).

7.00 %
24%
22%

Traditional (after-tax)

$694,833

Roth (tax-free)

$890,811

Better outcome

Trajectory

At these assumptions, the Roth IRA wins by $195,978.

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Next Steps

Recommendations
Ready to start your retirement journey?
Open a tax-advantaged Roth IRA account with $0 commission.
Open IRA
Lock contribution automation
Schedule monthly transfers so you hit the annual limit without thinking.
Re-run yearly
Bracket changes and life events shift the optimal answer. Bookmark this page.

How the math works

Both vehicles compound the same gross annual contribution at the same expected return. The decision reduces to a tax-timing question: pay income tax now (Roth) or later(Traditional). If your withdrawal-year bracket is lower than today's, Traditional usually wins; if higher, Roth wins.

  1. 01

    Annual compounding

    FV_y = (FV_{y−1} + Contribution) × (1 + r)
r = ExpectedReturn / 100

    Contributions are added at the start of each year and grow through year-end.

  2. 02

    Traditional after tax at withdrawal

    TraditionalAfterTax = FV_n × (1 − RetirementTaxRate / 100)

    Pre-tax contributions reduce taxable income today; entire balance is taxed on withdrawal.

  3. 03

    Roth after tax

    RothAfterTax = FV_n

    Contributions are post-tax now; qualified withdrawals (after age 59½, 5-year rule) are tax-free.

  4. 04

    Decision

    Winner = argmax(TraditionalAfterTax, RothAfterTax)
Does not model RMDs, state tax, Social Security taxability, or reinvested Traditional tax savings.