TFSA vs. RRSP Calculator

Mathematically prove which account is better for your retirement based on exact 2026 Canadian tax brackets.

Did you know? Your RRSP contribution limit is 18% of your earned income from the previous year.
We use this to calculate your exact tax refund today.
$
Your expected income in retirement (CPP, OAS, Pensions). We use this to calculate your future withdrawal tax.
$
How much cash you plan to invest every year.
$
Time until you plan to retire.
years
Conservative average is 6-8%.
%
If you spend the specific tax refund generated by this RRSP contribution instead of reinvesting it, the RRSP usually loses to the TFSA.
Reinvest Refund
Spend Refund
Provincial tax brackets change the math significantly.
Ontario
Quebec
British Columbia
Alberta
Manitoba
Saskatchewan
Nova Scotia
New Brunswick
Newfoundland and Labrador
Prince Edward Island
Yukon
Northwest Territories
Nunavut
The Winner Is:
RRSP by $12,032
Why did the RRSP win? By reinvesting your spring tax refunds, you added $44,475 in extra capital to your portfolio. That extra compound growth was large enough to easily pay off the CRA and still leave you with more profit!
TFSA
RRSP
$329,187
$341,219
29.7%
20.1%
Tax Paid to CRA on Withdrawal $85,572
Total Out-of-Pocket Cash $150,000
Total Reinvested Tax Refunds + $44,475

Retirement Math FAQ

Understanding refunds, tax drag, and the math behind the accounts.

TFSA vs RRSP
The Refund Trap
The Math
Which account is mathematically better?

It depends entirely on your tax brackets. Generally, if your current salary is higher than your expected retirement salary, the RRSP wins mathematically. If your current salary is lower than your retirement salary, the TFSA wins.

Do I pay tax on a TFSA?

No. The money you put into a TFSA has already been taxed from your day job. All the compound growth, dividends, and withdrawals are 100% tax-free forever.

Do I pay tax on an RRSP?

Yes. RRSP contributions give you a tax break today, but every single dollar you withdraw in retirement (both the principal and the growth) is taxed as standard income.

How do I open a TFSA or RRSP?

You can open both accounts through any major Canadian bank, credit union, or online brokerage (like Wealthsimple or Questrade). Opening an account is usually free and takes just a few minutes online.

What should I buy inside my TFSA or RRSP?

A TFSA or RRSP is just a tax-sheltered 'basket'. Once your cash is in the account, you must actively buy investments like GICs, Index Funds, ETFs, or stocks to generate compound growth. If you just leave it as cash, it will earn almost zero interest.

Are there contribution limits for TFSAs and RRSPs?

Yes. You cannot put infinite money into these accounts. Your TFSA limit is a flat amount set by the government each year (e.g., $7,000 for 2026), plus any unused room since you turned 18. Your RRSP limit is generally 18% of your previous year's earned income, up to a maximum (e.g., $33,810 for 2026). You can find your exact personal limits by logging into your CRA 'My Account' or checking your latest Notice of Assessment.