Backdoor Roth IRA Conversion Taxes (opens in new tab)

I am above the MAGI threshold for making contributions to a Roth IRA. If I were to do a nondeductible contribution to an existing IRA then convert that contribution to a Roth IRA, would having a higher traditional IRA balance negate most of the tax advantages? For example, if I have $195K across my pre-tax retirement accounts and I make a $5,000 nondeductible contribution to a traditional IRA then convert that to a Roth IRA, I would have to pay ordinary income tax on $4,875 of that conversion...