TFSA vs RRSP Calculator
Compare the after-tax outcome of the same contribution in each account.
Calculator workspace
The two accounts come out even.
Your tax rate now (0.0%) and on withdrawal (0.0%) are about the same, so neither account has an edge.
- TFSA After 25 Years
- $0
- RRSP After 25 Years
- $0
How It Works
The calculator compares one contribution held in a TFSA with the same contribution held in an RRSP. The TFSA side compounds without withdrawal tax. The RRSP side applies today’s marginal rate as an estimated refund, compounds the contribution, then taxes the withdrawal at the retirement marginal rate you enter.
When “reinvest refund” is on, the estimated refund is compounded at the same return and added to the RRSP after-tax result. That is the usual fair comparison when the refund is invested rather than spent.
Current and retirement marginal rates come from the modeled combined federal and provincial brackets for the selected jurisdiction and the incomes you enter. Both accounts use the same constant annual return over the horizon.
The result is an after-tax future-value comparison under those assumptions. It is not a recommendation to use only one account, and it does not check contribution room.
What It Leaves Out
- Contribution room, carry-forward, and over-contribution rules are not modeled.
- Fees, divergent returns between accounts, and changing tax brackets over time are ignored.
- OAS recovery tax, GIS, and other benefit interactions are outside this single-contribution comparison.
Federal and provincial income-tax rules based on 2026 model year.
FAQ
An RRSP can produce a higher estimated after-tax outcome when your marginal tax rate during contribution years is higher than your tax rate at withdrawal, provided the tax refund is reinvested. If your current and retirement tax rates are equal, both accounts compound at the same effective after-tax rate.
If the upfront tax refund is spent rather than invested, the RRSP loses its compounding parity with the TFSA. In that scenario, a TFSA often delivers a larger final after-tax balance because TFSA withdrawals are entirely tax-free.
TFSAs provide flexible, tax-free cash flow before age 65 without inflating taxable income or impacting benefit thresholds. Many early retirees use TFSA funds alongside targeted RRSP withdrawals to bridge spending before pensions begin.