Roth Conversion Calculator
Should you convert traditional IRA money to Roth? It comes down to one thing: your tax rate now versus in retirement. Compare the two outcomes.
Brokerages that handle Roth conversions
Learn moreThe break-even is the rate
A Roth conversion means paying income tax now so the money grows and comes out tax-free later. The math is simple at its core: if your tax rate in retirement will be higher than today’s, converting wins; if it’ll be lower, staying traditional wins. Equal rates are a wash.
How it’s calculated & sources
We compare two paths on the same pre-tax amount and growth: Roth = amount × (1 − today’s rate) grown at your return; Traditional = amount grown at your return, then taxed at your retirement rate. This assumes the conversion tax is paid from the converted funds.
Benchmark: the break-even is when your retirement tax rate equals today’s rate. Convert when you expect higher future rates or have a low-income year.
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
Converting $50,000 at a 22% rate today, growing 6% for 20 years, beats leaving it traditional if you’d otherwise withdraw at 24% — an edge of a few thousand dollars.
Frequently asked questions
Should I pay the tax from the IRA or outside cash?
Paying from outside cash is better — more money stays invested in the Roth. This tool assumes the simpler case of paying from the converted amount.
Are there other benefits?
Yes — Roth IRAs have no required minimum distributions, and tax-free withdrawals can help manage Medicare premiums and Social Security taxation in retirement.