Retirement calculator

Roth Conversion

We compare the after-tax value of converting to a Roth now (paying tax today, then growing tax-free) versus leaving the money in a traditional account (growing now, taxed at withdrawal).

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The method

How it works

01 Roth path: subtract today's tax from the amount, then grow it tax-free for the holding period.
02 Traditional path: grow the full amount, then subtract the expected future tax rate at withdrawal.
03 The difference between the two after-tax values is the Roth advantage (or disadvantage).

roth = amount × (1 − taxNow) × (1+g)^years; traditional = amount × (1+g)^years × (1 − taxLater); benefit = roth − traditional.

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