RRSP vs. TFSA Calculator Canada
Find out which account gives you more after-tax wealth at retirement
How the calculator compares RRSP and TFSA
The entered amount is annual pre-tax income available for saving. The full amount grows inside the RRSP and is taxed at the assumed retirement withdrawal rate. The TFSA receives the amount left after the current tax rate and then grows tax-free.
Use the comparison step by step
- Enter the annual amount and investment horizon.
- Use the same expected return for both accounts.
- Compare your current marginal tax rate with the expected RRSP withdrawal rate.
- Review the ending values, withdrawal tax, and the charted paths.
Example: CAD 10,000 of pre-tax income
At a 40% current tax rate, CAD 10,000 corresponds to a CAD 6,000 TFSA contribution in this model. The RRSP receives CAD 10,000 but is taxed later. If the retirement tax rate is below 40%, the RRSP will typically lead in this simplified scenario.
Contribution room and personal factors
The comparison does not verify personal contribution room. Employer matching, existing balances, fees, benefit thresholds, OAS clawback, and reinvestment of the RRSP tax refund are also excluded. The annual refund is shown only for context.