Skip to main content
Calcimator

Roth Conversion Calculator

Analyze the tax impact, break-even timeline, and long-term benefit of converting traditional IRA or 401(k) funds to a Roth IRA.

Inputs

$
$
%
%
%

Results

Net Benefit (Tax Paid Outside)

$42,567.00

≈ 4 years of state college

Tax Cost of Conversion

$13,986.00

≈ 7 gaming PCs

Net Benefit (Tax From IRA)-$11,555.00
Effective Tax Rate on Conversion27.97%
Roth Future Value (Tax-Free)$193,484.00
Traditional After-Tax Value$150,918.00
Federal Tax on Conversion$11,486.00
Break-Even (Years)-1
Roth Basis36,014
How to Use This Calculator
  1. Enter Conversion Amount — the amount to move from a traditional IRA/401(k) to a Roth IRA.
  2. Set Current Taxable Income — the conversion adds to ordinary income in the conversion year.
  3. Select Filing Status and enter State Tax Rate %.
  4. Set Expected Annual Return % and Years Until Withdrawal.
  5. Enter Expected Retirement Tax Rate % — if higher than current rate, Roth conversion saves money.
  6. Review Net Benefit (Tax Paid Outside) — paying conversion tax from non-retirement funds maximizes the Roth's advantage.

How the result changes with Years Until Withdrawal

Years Until WithdrawalNet Benefit (Tax Paid Outside)Tax Cost of Conversion
5.9$16,508.00$13,986.00
18$37,179.00$13,986.00
33$102,579.00$13,986.00
45$231,027.00$13,986.00

What each input means

Conversion Amount ($)
Amount to convert from traditional IRA/401(k) to Roth IRA.
Current Taxable Income ($)
Your taxable income before the conversion. The conversion amount is added on top. Tax computed using current-year federal brackets.
Filing Status
Your filing status determines which tax brackets apply to the conversion income.
State Tax Rate (%)
Your state income tax rate applied to the conversion amount.
Expected Annual Return (%)
Expected annual investment return on the converted funds.
Years Until Withdrawal
How many years until you withdraw the funds (must be 59.5+ to avoid penalties).
Expected Retirement Tax Rate (%)
Your projected marginal tax rate when you withdraw from a traditional IRA in retirement.

What each result means

Net Benefit (Tax Paid Outside)
Roth advantage if you pay the conversion tax from non-retirement funds.
Net Benefit (Tax From IRA)
Roth advantage if the tax is paid from the converted funds themselves.
Tax Cost of Conversion
Total federal + state tax owed on the conversion in the current year.
Effective Tax Rate on Conversion
Total tax on the conversion divided by the conversion amount.
Roth Future Value (Tax-Free)
Projected value of the Roth at withdrawal — all tax-free.
Traditional After-Tax Value
Projected after-tax value if funds stay in traditional IRA.
Federal Tax on Conversion
Federal income tax from adding the conversion to your current income.
Break-Even (Years)
Years until Roth overtakes traditional. 0 = immediately beneficial, -1 = may never break even.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Conversion Amount ($) = 50000, Current Taxable Income ($) = 80000, Filing Status = 0, State Tax Rate (%) = 5 = 7 input(s) provided
  2. Calculate Net Benefit
    Net Benefit = rothAfterTaxBest - traditionalAfterTax
    42567 = $42,567
  3. Calculate Tax Cost of Conversion
    Tax Cost of Conversion = federalTaxOnConversion + stateTaxOnConversion
    13986 = $13,986
  4. Calculate Net Benefit
    Net Benefit = rothFromConversion - traditionalAfterTax
    -11555 = $-11,555
  5. Calculate Effective Tax Rate on Conversion
    Effective Tax Rate on Conversion = conversionAmount > 0
    27.97 = 27.97%

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

Related Calculators

The questions that sit next to this one — chosen by subject, including calculators filed under a different category.

Investing & Retirement

Roth IRA Calculator

Project your Roth IRA balance at retirement with tax-free growth. See how annual contributions and compound interest build your nest egg — all tax-free at withdrawal.

Investing & Retirement

Withdrawal Sequence

Rough draw order illustration using 4% of each bucket (educational only).

Investing & Retirement

Retirement Planner Pro

401(k), IRA, Roth, Social Security, FIRE, income gap analysis

Tax Planning

Section 179 Calculator

Calculate your maximum Section 179 deduction for business equipment purchases, including phase-out reductions, income limitations, and combined first-year write-off with bonus depreciation.

Tax Planning

Bonus Depreciation Calculator

Calculate first-year bonus depreciation deductions under the TCJA phase-down schedule, combined with MACRS recovery for eligible asset purchases.

More in Tax & Accounting.