Home › Traditional IRA Calculator

Traditional IRA Calculator

A traditional IRA's headline balance is pre-tax money. This calculator shows the balance, the tax waiting on withdrawal at your retirement rate, and the after-tax figure that is really yours.

Your IRA

The headline balance is not all yours

A traditional IRA grows pre-tax money: deductions going in, income tax coming out. The only honest way to read its balance is net of the tax waiting at the exit — which is why this calculator leads with the after-tax figure and shows the government's share as a line item, not a footnote.

After-tax value = projected balance × (1 − your retirement tax rate)
Example: $20,000 plus $6,500 a year at 7% for 25 years projects to about $524,000 pre-tax. At a 22% retirement rate, $115,000 of that is future tax — the spendable answer is about $409,000. At a 12% retirement rate the same account keeps $461,000: the rate gap is the whole game.

When traditional beats Roth

Deduct at 32% now, withdraw at 12% later and the traditional account wins by that 20-point spread on every dollar. Peak-career savers planning a leaner retirement are its natural constituency; the Roth conversion calculator exists for the years when the spread flips sign.

How this is calculated

The projection compounds annually at the entered return with year-end contributions (site convention). After-tax value applies the flat retirement rate you enter to the whole balance — correct for fully pre-tax money; if your account holds after-tax basis, that portion returns untaxed, which the page cannot know and does not claim. The 'deduction value' line totals contributions × your current rate, ignoring that the deduction's own savings could be invested.

Frequently asked questions

Is the deduction guaranteed?

Not always: if you (or a spouse) are covered by a workplace plan, the deduction phases out above income thresholds, and nondeductible contributions create basis that must be tracked (Form 8606 in the US). The model's rates are your assumptions about your case.

What tax rate should I use for retirement?

The marginal rate your withdrawals will actually face — often lower than your working-years rate because the withdrawal itself may be your main income. Bracket-blending means the effective bite is usually below the top bracket's label.

Do required distributions apply?

Traditional IRAs carry RMDs from the statutory age (the RMD calculator has the IRS table). Roth IRAs do not during the owner's life — one of the structural differences this pair of pages is built around.

Can I convert to Roth later?

Yes — conversion moves money to the Roth side at the cost of tax in the conversion year. Low-income years between retirement and required distributions are the classic window; see the conversion calculator.

Not financial advice. This calculator is for information and education only. Results are estimates worked out from the figures you enter and the conventions described on this page; they are not financial advice, a loan offer, a quote, or a guarantee of any return. Products, rates and rules change, and your own circumstances matter — for decisions about your money, speak to a qualified, regulated professional.

Embed this calculator

Writing about money — a blog, a school page, a community site? Put this calculator on your page, free: copy the code below and paste it where you want the calculator to appear. It stays up to date automatically — the small credit line underneath is all we ask in return.