TFSA vs RRSP Calculator (Canada)
Compare a TFSA with an RRSP for the same pre-tax money, using your tax rate now and the rate you expect in retirement.
How the two accounts differ
An RRSP gives you a tax deduction now, the money grows tax deferred, and you pay tax on withdrawals. A TFSA gives no deduction, but growth and withdrawals are tax free. To compare fairly, both start from the same pre-tax money: the RRSP uses all of it, and the TFSA uses what is left after tax today.
If your tax rate in retirement is lower than today, the RRSP tends to win. If it is higher, the TFSA tends to win. If they are equal, both give the same result. RRSP withdrawals can also affect income-tested benefits such as OAS and GIS, which this tool does not model.
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- If you are early in your career with a low rate, the TFSA is often a good choice.
- Reinvest the RRSP refund so you keep the full advantage.
- Check your contribution room on your CRA My Account.
Learn more
Frequently asked questions
Which is better, TFSA or RRSP?
It depends on your tax rate now compared with retirement, and on benefits you may lose.
Do I have to choose one?
No. Many people use both.
Does this include contribution limits?
No. Check your own limits with the Canada Revenue Agency.
Why is the refund not added?
Using pre-tax money for both accounts already includes the effect of the refund.
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