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RRSP vs TFSA Calculator

Use this RRSP vs TFSA calculator to decide which account is better for your situation. In 2025, the TFSA contribution limit is $7,000 and the RRSP deduction limit is $31,560. Enter your current income, expected retirement income, contribution amount, and province to see a side-by-side after-tax comparison.

RRSP vs TFSA Comparison

If your marginal rate today is higher than in retirement, RRSP typically wins. If lower, TFSA wins. Same rate = roughly equal; TFSA offers more flexibility.

$

Marginal rate: 29.6%

$

Withdrawal marginal rate: 19.6%

$

Recommendation

RRSP

Your marginal rate now (29.6%) is higher than at withdrawal (19.6%). RRSP tax deferral wins — you save $2965 now and pay less tax when you withdraw.

RRSP after tax (at withdrawal)

$27,243

TFSA after tax

$23,823

RRSP refund now: $2,965 · Tax on withdrawal: $6,620

RRSP advantage: $3,420 (+14.4%)

How RRSP vs TFSA Calculator Works

  1. Enter current income: Your marginal rate today.
  2. Estimate retirement income: Expected taxable income in retirement.
  3. Set contribution amount: How much you plan to invest.
  4. See recommendation: RRSP vs TFSA after-tax comparison.

Compares after-tax outcomes: RRSP provides a deduction now but is taxable on withdrawal; TFSA has no deduction but withdrawal is tax-free. The break-even occurs when marginal rate today equals marginal rate in retirement. Assumes identical investment returns.

Frequently Asked Questions

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