Work out roth vs traditional comparison instantly with clear inputs, formula shown and shareable results.
Traditional contributions are deducted now and taxed on withdrawal; Roth contributions are taxed now and withdrawn free. With identical tax rates the two are mathematically equal, so the decision turns entirely on whether your rate will be higher now or later. An 8% annual return is assumed throughout.
After-tax comparison
Traditional = FV(C) × (1 - t_later); Roth = FV(C × (1 - t_now))
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because multiplication is commutative — taxing before or after growth gives the same result when the rate does not change.
Roth accounts avoid required withdrawals in many regimes and give tax diversification, which has value beyond the arithmetic.