Roth Conversion Calculator 2025 β€” Tax Cost vs Future Savings

Calculate whether a Roth conversion makes sense. See the tax cost now vs tax savings later and find your breakeven year.

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Tax Cost Today
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Tax Saved at Withdrawal
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Net Benefit
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Breakeven Year

Conversion Analysis

How to Use This Roth Conversion Calculator

Enter the amount you want to convert, your current tax bracket (the rate at which the conversion will be taxed), and your expected retirement tax rate. The calculator compares the immediate tax cost against the future tax savings on the grown balance to determine if the conversion is worthwhile.

For best results, pay the conversion taxes from outside funds (not the converted amount), so the full converted amount grows in the Roth.

The Formula

Tax Cost Now = Conversion Amount Γ— Current Rate
Future Value = Conversion Amount Γ— (1 + r)^n
Tax Saved Later = Future Value Γ— Retirement Rate
Net Benefit = Tax Saved Later βˆ’ Tax Cost Now (FV-adjusted)
Breakeven: Year when cumulative benefit > tax cost

Example

Convert $50,000, currently in 22% bracket, expect 18% in retirement, 20 years, 7% return:
Tax cost now: $50,000 Γ— 22% = $11,000
Future value in Roth: $50,000 Γ— (1.07)^20 = $193,484
Tax avoided: $193,484 Γ— 18% = $34,827
Net benefit: $34,827 βˆ’ $11,000 = $23,827 β€” Conversion is worthwhile!
Extended

Optimal Conversion Amount Analyzer

Find the ideal conversion amount to fill your current tax bracket without jumping into a higher one

Find the optimal conversion amount β€” the maximum you can convert without entering the next tax bracket.

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Bracket Fill Analysis β€” How Much Can You Convert at Each Rate?

Tax BracketRoom AvailableTax on ConversionFuture Value (20yr)Recommendation

Frequently Asked Questions

What is a Roth conversion?
A Roth conversion is moving money from a traditional IRA or 401(k) (pre-tax) into a Roth IRA (after-tax). You pay income tax on the converted amount in the year of conversion, but the money then grows and is withdrawn tax-free in retirement.
When does a Roth conversion make sense?
Roth conversions make the most sense when your current tax rate is lower than your expected retirement rate. Common scenarios: early retirement years with low income, years with large deductions, before Social Security begins, or when traditional IRA balances are growing faster than you can spend them.
How much can I convert to a Roth IRA?
There is no limit on how much you can convert from a traditional IRA to a Roth IRA in a single year. However, the full converted amount is added to your taxable income, which may push you into a higher bracket. Most advisors recommend converting only up to the top of your current bracket.
What is the 5-year rule for Roth conversions?
Each Roth conversion has its own 5-year clock. To withdraw converted funds tax- and penalty-free, you must wait 5 years from the conversion date (unless you are age 59Β½ or older). This rule is separate from the 5-year rule for Roth IRA earnings.
Can I undo a Roth conversion?
No. The Tax Cuts and Jobs Act of 2017 eliminated the ability to recharacterize (undo) a Roth conversion. Once the conversion is made, it is permanent. Careful planning before converting is essential, as you cannot reverse the decision if your tax situation changes.