How to use this calculator
- Enter the inputs using consistent units.
- Review rate, timing, and scope assumptions.
- Select Calculate to update every result.
- Change one assumption at a time to compare scenarios.
#3310 · Finance Tool
Roth Conversion Break-Even Age Calculator
Estimate the age when a Roth conversion recovers the tax paid today through the difference between current and future tax treatment. The model compares after-tax Roth and traditional values and solves for a practical break-even point.
Calculator
Enter assumptionsFormula
Find the first year y where (amount − current tax) × (1 + Roth return)y ≥ amount × (1 + traditional return)y × (1 − future tax rate)
What the result means
Break-even age is the first whole-year point where the modeled Roth after-tax value reaches the traditional after-tax value. It is not a recommendation to convert.
This is an educational estimate, not tax, legal, or investment advice. Tax rules, eligibility, account ordering, and state treatment vary; confirm decisions with a qualified professional.
Example calculation
At age 55, converting $100,000 at 22% leaves $78,000 in Roth. Traditional after-tax starting value at a 28% future rate is $72,000, so the model is already at break-even at age 55.
Tips for better results
- Keep units consistent from input through result.
- Use unrounded values during the calculation and round only the displayed result.
- Run a conservative and an optimistic scenario before acting.
- Document assumptions so the estimate can be reproduced.
Frequently asked questions
Why does the calculator use whole years?
It searches annual compounding points and reports the first year Roth reaches the traditional path.
Why can break-even occur immediately?
After-tax traditional value may already be below the Roth principal remaining after conversion tax.
What if no break-even is found?
Under the entered rates and returns, Roth does not catch the traditional path within 100 years.
Does this include taxes paid from outside cash?
No. This break-even model assumes conversion tax is withheld from the converted amount.
Should Medicare premiums and tax brackets be included?
They can materially affect a real conversion, but they are outside this simplified comparison.
Related calculators
Break-even drivers
| Driver | Effect |
|---|---|
| Higher future tax rate | Lowers traditional after-tax value |
| Tax paid from conversion | Reduces Roth starting principal |
| Return difference | Changes how quickly paths converge or diverge |