Investment Account Calculator
Roth IRA vs Taxable Account Calculator
Compare projected Roth IRA growth with a taxable account using editable contribution, return, and annual tax-drag assumptions.
Use the Roth IRA vs Taxable Account Calculator
Your results
- Projected Roth IRA balance
- $0.00
- Projected taxable account balance
- $0.00
- Estimated Roth IRA advantage
- $0.00
- Estimated taxable growth drag
- $0.00
Account Growth Comparison
How this calculator works
- What it does
- Compare projected Roth IRA growth with a taxable account using editable contribution, return, and annual tax-drag assumptions.
- Inputs used
- The estimate uses starting balance in each account, annual contribution to each account, expected annual return (%), estimated taxable account tax drag (%), and years invested.
- Calculation approach
- The calculator applies the relationships defined for the roth ira vs taxable account calculator to those inputs and updates projected roth ira balance, projected taxable account balance, estimated roth ira advantage, and estimated taxable growth drag.
- How to read the result
- Treat the result as a scenario based on the values entered. Compare a few reasonable inputs and consider costs, taxes, timing, or risks that the calculator does not include.
How to Use This Calculator
- Enter Starting balance in each account and Annual contribution to each account using values that match the scenario you want to evaluate.
- Enter Expected annual return (%) and Estimated taxable account tax drag (%) using values that match the scenario you want to evaluate.
- Enter Years invested using values that match the scenario you want to evaluate.
- Review the assumptions for the roth ira vs taxable account calculator, especially rates, time periods, and optional amounts.
- Select Calculate to update the results, then adjust one input at a time to compare scenarios.
Understanding the Results
- Projected Roth IRA balance
- The estimated value at the end of the selected period after applying the entered contributions, rates, and timing assumptions.
- Projected taxable account balance
- The estimated value at the end of the selected period after applying the entered contributions, rates, and timing assumptions.
- Estimated Roth IRA advantage
- The estimated roth ira advantage estimated by the Roth IRA vs Taxable Account Calculator using starting balance in each account, annual contribution to each account, and expected annual return (%) and the other values entered.
- Estimated taxable growth drag
- The estimated taxable growth drag estimated by the Roth IRA vs Taxable Account Calculator using starting balance in each account, annual contribution to each account, and expected annual return (%) and the other values entered.
Common Mistakes
- Ignoring contribution limits, eligibility rules, taxes, penalties, or account-specific restrictions.
- Comparing pre-tax and after-tax balances as though they were directly equivalent.
- Assuming current tax rates and laws will remain unchanged.
- Treating the calculator result as individualized tax advice.
Frequently asked questions
How does the Roth IRA vs Taxable Account Calculator compare growth?
It applies the full entered return to the Roth scenario and reduces the taxable scenario return by the editable annual tax-drag assumption.
Does the comparison include taxes when the taxable account is sold?
No. It models annual growth drag only and excludes final capital-gains taxes, tax-loss harvesting, basis, withdrawals, and account fees.
Does this calculator guarantee qualified Roth IRA treatment?
No. Eligibility and qualified distribution treatment depend on applicable rules and personal circumstances.
How should I estimate tax drag for the Roth IRA vs taxable comparison?
Use a range based on investment income, turnover, distributions, tax rates, and holding period rather than assuming one precise figure.
Are contribution limits modeled in the Roth-versus-taxable comparison?
No. The same editable annual contribution is used in both scenarios without enforcing limits or income phaseouts.
What does the Roth IRA vs Taxable Account Calculator calculate?
Compare projected Roth IRA growth with a taxable account using editable contribution, return, and annual tax-drag assumptions. The result is based only on the inputs and assumptions shown on the page.
How should I interpret the projected roth ira balance from the Roth IRA vs Taxable Account Calculator?
Use it as an estimate for the scenario entered, not as a guarantee or personal recommendation. Test changes to starting balance in each account, annual contribution to each account, and expected annual return (%) to see which assumptions have the greatest effect.