RRSP vs TFSA calculator
Compare equal out-of-pocket contributions using your tax rate today, withdrawal tax rate later and investment assumptions.
Your numbers
Your result
Example scenarioRRSP advantage after tax
One contribution, equal out-of-pocket cost, full deduction recycled immediately
Try a different scenario
See the RRSP and TFSA amounts using equal out-of-pocket cost.
Or save these inputs, change a number and compare with your saved scenario.
Why this number?
The TFSA receives your after-tax budget B. The RRSP receives B/(1 − t), where t is the deduction tax rate. The larger RRSP deposit assumes the full tax saving is immediately recycled into the contribution. This is a simplified gross-up model; refund timing or borrowing costs are not modelled.
Result breakdown, line by line
Values use the assumptions above and the exact inputs entered. Compare scenarios before making a decision.
Planning estimate. Rate and return assumptions can change the result.
How is this calculated?Money Figures · RRSP vs TFSA calculator · Model v0.1.6 · Values in Canadian dollars
Charts, table & comparisonsTake a closer look at your result.
Your projection
SHOWING OUR WORK
Assumptions & methodology
Equal cost, not equal deposits
The TFSA receives your after-tax budget B. The RRSP receives B/(1 − t), where t is the deduction tax rate. The larger RRSP deposit assumes the full tax saving is immediately recycled into the contribution. This is a simplified gross-up model; refund timing or borrowing costs are not modelled.
After-tax comparison
TFSA future value = B × (1 + r)^years. RRSP after-tax future value = B/(1 − t) × (1 + r)^years × (1 − future withdrawal tax rate). If the two tax rates are equal, after-tax values are equal under these assumptions.
Important limits
The model uses one contribution today, sufficient available room in both plans, an immediately available full deduction, the same constant effective annual return and a fully taxable RRSP withdrawal. It does not calculate tax brackets, your actual refund, withheld tax, ongoing deposits, pension adjustments, contribution eligibility, benefit clawbacks, estate issues or withdrawal timing. The tax rate assumptions may not apply uniformly to a large contribution or withdrawal.
A worked example
With C$5,000 of after-tax money, a 30% deduction tax rate and a 20% future withdrawal tax rate, compare a C$5,000 TFSA deposit with a C$7,142.86 gross RRSP contribution. Both have an assumed net cost of C$5,000.
Understand the result
RRSP or TFSA? Start with two tax rates
See how equal-cost RRSP and TFSA comparisons change with future withdrawal tax, refund reinvestment and contribution-room assumptions.
Read guideFHSA room and deadline explained
Understand FHSA annual room, carryforward, lifetime contributions, closing deadlines and the limits of a simplified comparison calculator.
Read guideImportant: planning estimate, not financial advice
Money Figures provides general calculator estimates based on the inputs and assumptions shown. It does not consider your full financial circumstances and is not financial, tax, investment, lending or legal advice. Results do not guarantee lender, insurer, government or tax treatment. Confirm material decisions with the relevant institution or an appropriately qualified professional.
Your next money decision
Check eligibility and contribution room
A tax comparison is not a recommendation to open any particular account. Check deduction limits, withdrawal rules and fees with official sources.
Explore the next tool or guide →Sources
Sources checked: 2026-10-09. Targeted technical check: 2026-10-11. Financial model v0.1.6; release v0.2.9. Independent financial review is pending. Calculation standards · Change history.