RRSP vs TFSA Calculator
RRSP vs TFSA —
which wins for you?
Enter your numbers and see the exact after-tax value of each account at retirement — side by side.
Updated 2025 · 2025 CRA contribution limits
Your situation
$
Used to calculate your tax refund on RRSP contribution
$
Same amount invested in either account
yrs
%
Historical balanced portfolio avg: 5–7%
%
Effective rate when you withdraw RRSP
RRSP
—
After-tax value at retirement
Tax refund today (reinvested)—
Total contributions—
Balance at retirement—
Tax on withdrawal (est.)—
TFSA
—
After-tax value at retirement
No refund (post-tax contribution)—
Total contributions—
Balance at retirement—
Tax on withdrawal$0 — tax free
Summary
RRSP
TFSA
Your marginal rate today
——
Annual tax refund (RRSP only)
—$0
Total invested (incl. refund)
——
Retirement tax rate assumed
—0%
Advantage
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ℹ️ Assumes consistent contributions, constant return, and withdrawal at retirement tax rate entered. RRSP refund is reinvested in RRSP. Simplified model — consult a financial advisor for personalized advice.
How this calculator works
The calculator compares the after-tax value of contributing the same dollar amount to either an RRSP or TFSA, invested at the same return, over the same number of years.
For the RRSP: your contribution generates a tax refund (based on your marginal rate). We reinvest that refund into the RRSP too. At retirement, the entire balance is taxed at your expected retirement rate.
For the TFSA: your contribution comes from after-tax dollars — no refund. But your entire balance at retirement is 100% tax-free.
The key insight
If your tax rate is higher today than in retirement, the RRSP wins — you defer tax at a high rate and pay it back at a lower rate. If your rates are equal, they produce identical results. The TFSA wins when your retirement rate is higher than today.
Frequently Asked Questions
What is the RRSP contribution limit for 2025?
The 2025 RRSP annual dollar limit is $32,490. Your personal limit is 18% of your 2024 earned income up to this maximum, plus any unused room carried forward from prior years. Check your CRA My Account or your Notice of Assessment for your exact limit.
What is the TFSA limit for 2025?
The 2025 TFSA annual limit is $7,000. If you've been eligible since 2009 and have never contributed, your cumulative room as of January 2025 is $102,000. You accumulate room from age 18 (or 2009, whichever is later).
Should I contribute to RRSP or TFSA first?
If your income is above $57,375 (in the 20.5% federal bracket), generally prioritize RRSP — the larger deduction is more valuable. Below that, TFSA is usually equal or better. When in doubt, TFSA first for flexibility — you can always carry RRSP room forward to a higher-income year.
Can I contribute to both in the same year?
Yes, absolutely. Many Canadians contribute to both. A popular strategy: contribute to RRSP, get the refund, then invest that refund into your TFSA. This effectively shelters the tax savings in a second tax-advantaged account.