How to use the RRSP vs TFSA calculator
- 1 Enter the amount you want to save before tax.
- 2 Enter your income now and your expected income in retirement.
- 3 Choose your province or territory.
- 4 Enter the years until you withdraw and a yearly return, then compare.
Worked example
$5,000 to save in Ontario, income $75,000 now and $45,000 in retirement, 25 years at 6%. Your tax rate now is about 32.6% and later about 19.1%. The RRSP grows to $21,459 and leaves $17,371 after tax, while the TFSA leaves $14,453, so the RRSP wins by about $2,918. With $45,000 of income now and $80,000 later, the TFSA would win by about $2,275.
Choosing between an RRSP and a TFSA
- High income now: the RRSP refund is worth more.
- Low income now: the TFSA is usually better and keeps benefits intact later.
- Reinvest your RRSP refund to keep its advantage.
- Use both when you have room.
See your refund with the RRSP Calculator, check room with the TFSA Room Calculator, and see your bracket with the Marginal Tax Rate Calculator.
Features
Real tax rates
Works out your marginal rate now and in retirement with 2026 brackets for every province.
Fair comparison
Compares the same pre-tax dollars in each account.
Clear winner
Shows which account leaves more after tax and by how much.
When to use it
Choosing where to save
Decide where this year's savings should go. See your refund with the RRSP Calculator.
Using TFSA room
Check how much you can add with the TFSA Room Calculator.
First home
For a home, the FHSA can beat both. Compare with the FHSA Calculator.
Lower earners
If your income is low now, a TFSA often wins, and keeps benefits like the GIS intact later.
Related Savings and Investing tasks
Frequently asked questions
Which is better, an RRSP or a TFSA?
If your tax rate in retirement will be lower than today, an RRSP usually wins. If it will be the same or higher, a TFSA wins or ties. Many people use both: an RRSP for high-income years and a TFSA for flexibility.
What are the 2026 contribution limits?
The RRSP limit is 18% of your 2025 earned income up to $33,810, plus unused room. The TFSA limit is $7,000 for 2026, with unused room carried forward.
Why compare the same pre-tax dollars?
Because an RRSP contribution of $5,000 really costs less than $5,000 after the refund. To compare fairly, the TFSA gets the after-tax amount you would have, $5,000 minus the tax.
What if I spend my RRSP refund?
Then the RRSP's advantage shrinks. The comparison assumes you invest the refund or contribute the gross amount.
How do withdrawals affect benefits?
RRSP and RRIF withdrawals count as income and can reduce the GIS and trigger the OAS clawback. TFSA withdrawals do not count, which is a big advantage for many retirees.
Can I re-contribute TFSA withdrawals?
Yes. Amounts you take out are added back to your room on January 1 of the next year. RRSP withdrawals do not restore room, except under the Home Buyers' Plan and Lifelong Learning Plan.
Do I pay tax on TFSA growth?
No. Interest, dividends and capital gains in a TFSA are tax-free, and so are withdrawals.
What about employer RRSP matching?
If your employer matches RRSP contributions, the free money usually makes the RRSP the better choice.
Is this financial advice?
No. It is an estimate using 2026 tax rates. Your real tax rates and returns will differ.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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