TFSA vs RRSP Calculator

Should your savings go into a TFSA or an RRSP? Enter what you can save, your marginal tax rate now and in retirement, and your expected return to compare the after-tax result side by side.

After-tax amount you can save

Marginal tax rate now (%)

Your combined federal + provincial rate

Marginal tax rate in retirement (%)

Your expected rate when you withdraw

Years until withdrawal

Annual rate of return (%)

Reinvest the RRSP tax refund (contribute the pre-tax equivalent)

TFSA after tax

$290,782

Withdrawals are tax-free

RRSP after tax

$325,502

$434,003 minus $108,501 tax

Better choice

RRSP

by $34,720 after 25 years

After-tax value over time

TFSA RRSP

Years from now · after-tax value if withdrawn

Your contributions

TFSA deposit per year: $5,000
RRSP deposit per year: $7,463
RRSP tax refund per year: $2,463

Rates last updated: September 26, 2026

Estimates only — this calculator is for general information and is not tax, legal or financial advice. Tax rules have exceptions this tool doesn't cover; confirm with the official tax authority or a qualified professional before making decisions.

TFSA vs RRSP: the one question that decides it

The Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP) both let your investments grow without yearly tax. The difference is when you pay tax. RRSP contributions are deducted from your income, so you get a tax refund now, but every dollar you withdraw later is taxed. TFSA contributions come from after-tax money, but withdrawals — including all the growth — are tax-free. So the deciding factor is simple: is your marginal tax rate higher now, or will it be higher when you withdraw?

Higher tax rate now than in retirement → the RRSP usually wins.
Lower tax rate now than later → the TFSA usually wins.
Same rate → they produce exactly the same result, if you reinvest the RRSP refund.

How to use the calculator

Enter the after-tax amount you can afford to save, and whether it’s every year or a one-time deposit.
Enter your marginal tax rate today — your combined federal and provincial rate on your last dollar of income.
Estimate your marginal rate when you’ll withdraw the money.
Set the number of years and an expected annual return.
Compare the after-tax results, and hover over the chart to see any year.

How the comparison works

To compare fairly, both accounts cost you the same after-tax dollars. If you can save $5,000 of take-home pay and your marginal rate is 33%, you can put $5,000 into a TFSA — or about $7,463 into an RRSP, because the $2,463 tax refund pays for the difference. Both balances grow at the same return. At the end, the TFSA is yours tax-free, while the RRSP balance is reduced by tax at your retirement rate.

Mathematically, the RRSP result equals the TFSA result multiplied by (1 − retirement rate) ÷ (1 − current rate). That’s why a lower rate later favours the RRSP, and why the return you choose changes the size of the gap but not which account wins. If you untick “Reinvest the RRSP tax refund”, the calculator assumes the refund is spent, which is the most common way RRSPs underperform in real life.

2026 contribution limits

According to the Canada Revenue Agency, the 2026 TFSA dollar limit is $7,000, and the RRSP limit is 18% of your previous year’s earned income up to $33,810. Unused room in both carries forward indefinitely. Your personal RRSP deduction limit is on your latest notice of assessment, and your TFSA room is shown in CRA My Account.

Things the numbers don’t capture

RRSP withdrawals count as income and can reduce income-tested benefits such as OAS and the GIS.
TFSA withdrawals restore your contribution room the following year; RRSP withdrawals don’t.
The RRSP Home Buyers’ Plan and the FHSA offer extra options if you’re saving for a first home.

Planning a home purchase? Estimate closing costs with the Land Transfer Tax Calculator and mortgage payments with the Loan Calculator.

Frequently asked questions

Is a TFSA or RRSP better?

If your tax rate will be lower when you withdraw than it is today, an RRSP usually comes out ahead. If it will be higher, a TFSA usually wins. If the rates are the same, both give the same result — as long as you reinvest your RRSP tax refund.

What are the 2026 TFSA and RRSP limits?

The 2026 TFSA dollar limit is $7,000. The 2026 RRSP limit is 18% of your previous year's earned income, up to $33,810. Unused room in both accounts carries forward.

Why does reinvesting the RRSP refund matter?

An RRSP contribution is made with pre-tax money, so you get a refund. To compare fairly with a TFSA, the refund needs to be invested too. If you spend it, the RRSP loses much of its advantage.

What marginal tax rate should I use?

Use your combined federal and provincial rate on your last dollar of income. For retirement, estimate your income from pensions, CPP, OAS and RRIF withdrawals, and remember that RRSP withdrawals can reduce income-tested benefits like OAS and GIS.

Can I use both a TFSA and an RRSP?

Yes, and many Canadians do. A common approach is to put money in an RRSP in high-income years, and use a TFSA for flexible savings or when your income is lower.