Taxable vs Tax-Deferred Calculator
See how the same investment grows differently in a taxable brokerage account, a tax-deferred account (Traditional IRA/401k), and a tax-free account (Roth IRA/401k). Understand the impact of taxes on long-term investment growth.
Inputs
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Portion of return from dividends (taxed annually in taxable accounts)
%
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Results
Taxable (After Tax)
$902,379
Tax-Deferred (After Tax)
$893,125
Tax-Free (Roth)
$868,656
Total Contributed
$300,000
After-Tax Value Comparison
Growth Comparison Over Time
Balance Growth by Year
| Year | Taxable | Tax-Deferred | Tax-Free |
|---|---|---|---|
| 1 | $10,000.00 | $10,800.00 | $7,668.00 |
| 2 | $20,760.00 | $22,464.00 | $15,949.44 |
| 3 | $32,337.76 | $35,061.12 | $24,893.40 |
| 4 | $44,795.43 | $48,666.01 | $34,552.87 |
| 5 | $58,199.88 | $63,359.29 | $44,985.10 |
| 6 | $72,623.07 | $79,228.03 | $56,251.90 |
| 7 | $88,142.43 | $96,366.28 | $68,420.06 |
| 8 | $104,841.25 | $114,875.58 | $81,561.66 |
| 9 | $122,809.19 | $134,865.62 | $95,754.59 |
| 10 | $142,142.68 | $156,454.87 | $111,082.96 |
| 11 | $162,945.53 | $179,771.26 | $127,637.60 |
| 12 | $185,329.39 | $204,952.97 | $145,516.61 |
Frequently Asked Questions
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