Taxable vs Roth (Early Retirement) Calculator

How it works

Roth: value = value × (1 + r) + contribution, withdrawn tax-free · Taxable: value = value × (1 + r − drag) + contribution, then gains × capital-gains rate subtracted at the end

Both accounts are funded with after-tax dollars, so the difference is what happens afterward. A Roth grows and is withdrawn entirely tax-free, while a taxable brokerage account leaks a little each year to taxes on dividends (the "tax drag") and owes capital gains tax on its growth when you sell. Early retirees still favor Roth for its tax-free growth, but a taxable account offers unmatched flexibility — no age restrictions or withdrawal penalties — which matters when you retire well before 59½.

Worked example

Contributing $7,000 a year for 20 years at 7%: the Roth grows to about $287,000, all tax-free. A taxable account with a 0.5% annual drag grows to roughly $271,000; taxing its ~$131,000 of gains at 15% leaves about $251,000 net — around a $36,000 advantage for the Roth.

Frequently asked questions