Roth Conversion Calculator
Compare converting a traditional IRA to a Roth now versus leaving it traditional. Converting means paying tax today, but the Roth then grows and is withdrawn tax-free — an advantage when your retirement tax rate is higher than today's.
Your details
- Conversion tax due now
- $22,000.00
- Roth value at retirement
- $386,968.45
- Traditional value (after tax)
- $270,877.91
Roth vs Traditional
- Traditional (after future tax)
- $270,877.9170%
- Roth advantage
- $116,090.5330%
Formula
Roth value = amount × (1 + return)^years, withdrawn tax-free. Traditional value = the same growth, then taxed at your retirement rate on withdrawal. The model assumes you pay the conversion tax from separate funds, so the full amount stays invested. Roth advantage = Roth value − Traditional after-tax value.
Frequently asked questions
When does a Roth conversion make sense?⌄
Generally when you expect a higher tax rate in retirement than today, when you can pay the conversion tax from outside funds, and when you have a long time horizon for tax-free growth.
What does this model leave out?⌄
It ignores the five-year rule, required minimum distributions, Medicare (IRMAA) surcharges, state tax, and the opportunity cost if you pay the conversion tax from the account itself. Consult a tax advisor before converting.
Sources & methodology
Simplified comparison assuming the conversion tax is paid from separate funds. Excludes the 5-year rule, RMDs, IRMAA, and state tax. Not financial advice — consult a tax advisor.
- •IRS — Roth IRA conversions — IRS
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