$ Roth IRA Calc

Comparison calculator

Roth IRA vs taxable brokerage calculator

Estimate how much tax-free Roth IRA compounding may differ from a taxable brokerage account with dividend tax drag and long-term capital gains tax at sale.

Last updated: May 2026. This educational comparison uses simplified federal tax assumptions selected by the user.

Tax drag inputs

Compare Roth sheltering with brokerage taxes

Used with withdrawal age to set the investment horizon.
The age when both accounts are compared after tax.
Optional starting balance applied to both the Roth IRA and taxable brokerage paths.
Use the same annual investment amount for both paths.
Total return before dividend and capital gains taxes.
Portion of return treated as taxable annual dividend income.
Applied to yearly dividends before they are reinvested.
Applied to taxable gains when the brokerage account is sold.

This model assumes the same annual contribution in both accounts. It taxes annual dividends before reinvestment in the taxable account and applies long-term capital gains tax to remaining gains at the end.

Roth IRA value$784,578
Taxable after tax$675,030
Estimated Roth advantage$109,548

Roth IRA keeps more after tax

Over 30 years, the Roth path reaches $784,578. The taxable path reaches $675,030 after estimated dividend taxes and final capital gains tax. That is about 16.23% more after tax.

Roth IRA$784,578
Taxable brokerage after tax$675,030
Taxable balance before sale$737,139
Taxable account basis$323,081
Dividend taxes paid along the way$24,843
Final capital gains tax$62,109

How this taxable account comparison works

The Roth path applies the expected return inside a Roth IRA and treats qualified retirement withdrawals as tax-free. The taxable path splits return into price growth and dividends, taxes dividends each year before reinvestment, tracks taxable basis, and applies long-term capital gains tax to remaining gains at the end.

This is an educational estimate. It does not model state taxes, fund turnover, tax-loss harvesting, contribution eligibility, early withdrawal rules, or changing tax law.

Formula details are documented in the calculator methodology.