What is a taxable vs tax-deferred calculator?

A taxable vs tax-deferred calculator is a free online tool that helps you compare future value of taxable account vs tax-deferred (401(k)/IRA). Taxable: returns taxed annually. Tax-deferred: untaxed until withdrawal. It runs entirely in your browser with instant results and no sign-up.

Is this a substitute for a lender's pre-approval?

No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.

Do calculations include taxes and insurance?

When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.

Why does my actual payment differ?

Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.

Free taxable vs tax-deferred calculator

How it's calculated

How the taxable vs tax-deferred works

Taxable: returns taxed annually. Tax-deferred: untaxed until withdrawal.

taxable: after-tax compound at (1−t)r

tax-deferred: compound at r, taxed on withdrawal

Source: standard mortgage / personal finance formulas.

Accuracy

How accurate is this taxable vs tax-deferred?

Every formula on this site comes from an established, published source for its field — standard references in mathematics, finance, health, and engineering, not invented in-house. The math is implemented as a pure TypeScript function and tested against published reference values before going live. See the Methodology page for the full sourcing process.

Results are mathematically correct for the inputs provided. They are estimates only— real-world outcomes depend on factors specific to your situation, such as fees, taxes, timing, local rules, and assumptions that can change after the calculation date. See the Disclaimer for the limits on what to rely on a result for.

These pair naturally with this one for decisions that sit nearby.

Questions

Frequently asked questions about the free taxable vs tax-deferred calculator

What is a taxable vs tax-deferred calculator?
A taxable vs tax-deferred calculator is a free online tool that helps you compare future value of taxable account vs tax-deferred (401(k)/IRA). Taxable: returns taxed annually. Tax-deferred: untaxed until withdrawal. It runs entirely in your browser with instant results and no sign-up.
Is this a substitute for a lender's pre-approval?
No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.
Do calculations include taxes and insurance?
When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.
Why does my actual payment differ?
Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.