TFSA vs RRSP Calculator

Canada's eternal debate, settled with math: after-tax dollars, not contribution dollars. Free, private, no signup.

Your situation

Amount available to invest (C$, before tax)

Your marginal tax rate now (%)

Expected marginal rate in retirement (%)

Expected return (% per year)

Years invested

After-tax value in retirement

RRSP

Contributed (deductible)-

TFSA

Contributed (after tax)-

Winner's edge-

How each grows

■ RRSP (after tax) ■ TFSA

The one insight: it's all about the tax rates

RRSP contributions are deductible (you invest pre-tax dollars) but withdrawals are taxed. TFSA contributions are after-tax but growth and withdrawals are tax-free. Here's the beautiful part: if your marginal rate is the same now and in retirement, the two are mathematically identical — try 30% and 30% above.

RRSP wins when retirement rate < today. The classic case: high earner now, modest retirement income. You deduct at 40%, withdraw at 25%.
TFSA wins when retirement rate > today. Early career, or you expect a fat pension. Also wins on flexibility — withdrawals don't affect benefits like OAS/GIS, and there's no mandatory conversion at 71.
The real answer is usually both. RRSP for the deduction in peak earning years, TFSA for flexibility and the years your rate is low. Contribution room is the constraint: 18% of earned income for RRSP (capped yearly), fixed annual limit for TFSA.

FAQs

Can I contribute to both?

Yes — they have separate contribution room. Most financial plans use both: RRSP in high-income years, TFSA always.

What happens to unused TFSA room?

It carries forward indefinitely, and withdrawals restore contribution room the next calendar year — unique to the TFSA.

What's the RRSP deadline?

Contributions for a tax year can be made in the first 60 days of the following year (typically early March). TFSA has no deadline.

Does this account for the Home Buyers' Plan?

No — the HBP lets you borrow up to $35,000 from your RRSP for a first home (repayable over 15 years). It's a separate decision layered on the RRSP.

Is my data sent anywhere?

No. Everything is computed in your browser; nothing leaves your device.

Disclaimer: Estimates for illustration, computed in your browser — no data leaves your device. Simplified tax treatment; actual outcomes depend on full income picture and changing rules. Not financial advice.