IRA Calculator: Traditional vs Roth IRA Growth and 2026 Limits
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An IRA calculator projects your balance with FV = B × (1 + r)ⁿ + C × (1 + r) × ((1 + r)ⁿ − 1) ÷ r. Putting $7,500 a year into an IRA at 7% for 30 years grows to about $758,000 before tax. Whether the traditional or the Roth is better depends on your tax rate now versus later.
Putting $7,500 a year into a traditional IRA (taxed at 22% on the way out) leaves you about $825,869 after tax at 67, counting your current balance. The Roth, funded with the same take-home cost of $5,850 a year, leaves about $825,869. Your rates are the same, so the two come out even.
Growth of your yearly contributions
| Age | Traditional contributions | … after tax | Roth contributions |
|---|---|---|---|
| 35 | $0 | $0 | $0 |
| 38 | $25,800 | $20,124 | $20,124 |
| 41 | $57,405 | $44,776 | $44,776 |
| 44 | $96,123 | $74,976 | $74,976 |
| 47 | $143,555 | $111,973 | $111,973 |
| 50 | $201,660 | $157,295 | $157,295 |
| 53 | $272,842 | $212,817 | $212,817 |
| 56 | $360,043 | $280,834 | $280,834 |
| 59 | $466,868 | $364,157 | $364,157 |
| 62 | $597,733 | $466,231 | $466,231 |
| 65 | $758,048 | $591,277 | $591,277 |
| 67 | $884,501 | $689,911 | $689,911 |
Your current balance is added to both paths in the totals above.
Show the steps
- Years to grow: 67 − 35 = 32 years at 7.00% a year.
- Traditional: contribute $7,500 a year before tax. The contributions grow to $884,500.69 by 67.
- Take-home cost of $7,500 of pre-tax money at a 22% rate is $5,850.00, so the Roth gets $5,850.00 a year. They grow to $689,910.54 by 67.
- Tax the traditional withdrawals: $884,500.69 × (1 − 22%) = $689,910.54. Add your current balance grown to $174,305.42 (taxed the same way in both paths).
Balance formula (contributions at the start of each year)
FV = B × (1 + r)^n + C × (1 + r) × ((1 + r)^n − 1) ÷ r
B = starting balance, C = yearly contribution, r = yearly return, n = years
- 2026 limits: $7,500 per person, plus $1,100 if you are 50 or older. The limit covers all IRAs combined.
- Compares equal take-home cost. If you can only afford a smaller amount, Roth shelters more of your wealth per dollar contributed.
- Assumes a steady return and tax rates that do not change. Roth IRA withdrawals of earnings are tax-free after age 59½ and a 5-year holding period.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
An individual retirement account, or IRA, lets you save for retirement with a tax break. A traditional IRA usually gives you a deduction now and taxes the money when you withdraw it. A Roth IRA gives no deduction now, but the growth and the withdrawals are tax-free in retirement. This calculator shows both paths for the same yearly take-home cost, so you can see which one leaves you with more.
The key idea is the tax rate. If you expect to pay a higher rate in retirement than you pay today, paying the tax now (Roth) tends to win. If you expect a lower rate later, taking the deduction now (traditional) tends to win. If the rates match, the two end up the same. The tool also checks the 2026 contribution limit for your age and, if you give your income, how much you may put into a Roth and how much of a traditional contribution is deductible.
The growth projection assumes a steady return, with each contribution made at the start of the year. Real markets are bumpy, so treat the result as a guide to the size of the difference, not a forecast.
How to use it
- Enter your age, your planned retirement age, your current IRA balance and how much you plan to contribute each year.
- Set the expected yearly return. Many planners use 5% to 7% for a stock-heavy mix.
- Enter your tax rate today and your expected rate in retirement. Use your marginal federal rate, plus state tax if you like.
- Open the income box to add your filing status, income and workplace plan. The calculator shows your Roth limit and your traditional deduction limit.
- Compare the after-tax values and read the chart. Change the rates to see where the two accounts break even.
2026 IRA limits
For 2026 you can contribute up to $7,500 to all your IRAs combined, plus $1,100 if you are 50 or older, for $8,600. You also need earned income at least equal to the amount you contribute.
Roth IRA income limits for 2026
- Single or head of household: the limit starts to shrink at $153,000 of modified adjusted gross income and reaches zero at $168,000.
- Married filing jointly: $242,000 to $252,000.
- Married filing separately: $0 to $10,000.
Traditional IRA deduction limits for 2026
If neither you nor your spouse has a workplace plan, your contribution is fully deductible at any income. If you are covered by a plan, the deduction phases out between $81,000 and $91,000 for single filers and between $129,000 and $149,000 for joint filers. If you are not covered but your spouse is, the range is $242,000 to $252,000.
Worked example
Sam is 35, plans to retire at 67 and puts $7,500 a year into a traditional IRA that starts at $20,000, earning 7% a year. After 32 years the pre-tax total is about $1.06 million. At a 22% tax rate on withdrawals, it nets about $826,000. A Roth that costs the same take-home (about $5,850 a year after a 22% tax) ends at the same $826,000, because the two rates match. Change either rate and one side pulls ahead.
Which is better, a traditional or a Roth IRA?
Choose a traditional IRA if your tax rate is likely to fall in retirement, or if you need the deduction now to stay under an income limit. Choose a Roth if you expect your rate to rise, if you are early in your career, or if you want flexibility, since Roth contributions can be withdrawn at any time without tax. Many people split between both to hedge their bets.
Common mistakes
- Counting the 401(k) limit as part of the IRA limit. They are separate.
- Contributing to a Roth above the income limit. The excess is taxed 6% each year until fixed.
- Comparing a traditional and Roth with the same dollar contribution. The Roth then shelters more money after tax, which makes it look better than it is.
Sources
Quick check: test yourself
In 2026 a single filer with income of $160,000 (Roth range $153,000 to $168,000) can contribute how much to a Roth IRA if under 50?
Correct answer: $4,000. The limit shrinks in proportion across the 15,000 range: 7,500 × 8,000 ÷ 15,000 = 4,000 after the reduction of 3,500.
You expect your tax rate in retirement to be higher than today. Which account usually comes out ahead?
Correct answer: Roth IRA. With a Roth you pay tax now at the lower rate and withdraw tax-free later.
What is the 2026 IRA contribution limit for someone age 52?
Correct answer: $8,600. The 2026 limit is 7,500 plus a 1,100 catch-up for people 50 and older.
Pick an answer for each question.
Common questions
How much can I put in an IRA in 2026?
You can contribute up to $7,500, or $8,600 if you are 50 or older, across all of your traditional and Roth IRAs combined.
Is a Roth or a traditional IRA better?
It depends on your tax rate. A Roth tends to win when your rate in retirement is higher than today. A traditional IRA tends to win when it is lower. If they are equal, the results are the same.
Can I contribute if I make too much for a Roth?
Above the income range you cannot contribute directly to a Roth IRA, but you can still contribute to a traditional IRA. The deduction may be limited if you have a workplace plan.
Do I need earned income to contribute?
Yes. You can contribute up to the lesser of the annual limit or your taxable compensation for the year.
When can I withdraw from an IRA without a penalty?
After age 59½. Withdrawals before that usually face a 10% penalty plus tax, with some exceptions. Roth contributions (not earnings) can be taken out at any time.
Does this calculator include my 401(k)?
No. It covers IRAs only. 401(k) limits are higher and separate, at $24,500 for 2026.
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