Tools & Calculators / RRSP vs TFSA
Canada

RRSP vs TFSA Calculator

See which account grows your money faster based on your tax rates.

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Your Income & Province

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Current marginal rate: {{ currentRateStr }}  |  Retirement rate: {{ retRateStr }}
2

Contribution & Growth

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Recommended Account
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You end up with {{ diffStr }} more after tax
RRSP
Annual Contribution{{ contribStr }}
Tax Refund (reinvested)+{{ refundStr }}
Total Contributed{{ rrspContributedStr }}
Pre-Tax Value{{ rrspPreTaxStr }}
Withdrawal Tax−{{ rrspWithdrawTaxStr }}
After-Tax Value{{ rrspAfterStr }}
TFSA
Pre-Tax Income Needed{{ tfsaPreTaxNeededStr }}
Tax Paid Upfront−{{ tfsaTaxUpfrontStr }}
Annual Contribution{{ contribStr }}
Growth ({{ yearsStr }} years){{ tfsaGrowthStr }}
Withdrawal Tax$0 (tax-free)
After-Tax Value{{ tfsaAfterStr }}
After-Tax Growth Over Time
RRSP TFSA
Years →
Key Considerations Beyond the Numbers
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RRSP Reduces Taxable Income

May help you qualify for income-tested benefits like CCB, GST credit, or OAS

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RRSP Home Buyers' Plan

Withdraw up to $60,000 tax-free for your first home purchase

🔓
TFSA Is Fully Flexible

Withdraw anytime, tax-free, with no impact on government benefits

👴
RRSP Converts at Age 71

Must convert to a RRIF by Dec 31 of the year you turn 71, with mandatory minimum withdrawals

Note: This comparison assumes the RRSP tax refund is reinvested in the RRSP each year. Marginal tax rates are approximate 2025 combined federal and provincial rates. Actual results depend on your full tax picture, other income sources in retirement, and government benefit eligibility. Consult a financial advisor for personalized recommendations.

RRSP or TFSA: Which Is Right for You?

The answer comes down to tax rates. With an RRSP, you get a tax deduction today but pay tax when you withdraw in retirement. With a TFSA, you invest after-tax dollars but never pay tax on growth or withdrawals. If your tax rate is higher now than it will be in retirement, the RRSP wins — you save more tax today than you’ll pay later. If your rate stays the same or rises, the TFSA comes out ahead.

Beyond the math, RRSPs offer the Home Buyers’ Plan and reduce taxable income for benefit eligibility. TFSAs offer full flexibility — withdraw anytime with no tax impact.

Disclaimer: This calculator provides simplified estimates using 2025 marginal tax rates. It assumes the RRSP refund is reinvested annually and applies a flat marginal rate for withdrawals. Actual results depend on your full income sources in retirement, OAS clawbacks, pension splitting, and other factors. RRSP and TFSA contribution limits apply. Consult a financial advisor for personalized guidance.

Other RRSP & TFSA Calculators You Might Like
RRSP Contribution Room→ RRSP Withdrawal Tax→ TFSA Growth Calculator→ TFSA Contribution Room→