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
- Enter current income: Your marginal rate today.
- Estimate retirement income: Expected taxable income in retirement.
- Set contribution amount: How much you plan to invest.
- 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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