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RRSP vs TFSA Calculator

↻ Updated 2026

Should you contribute to an RRSP or a TFSA? Compare the after-tax value of each for the same out-of-pocket cost, using your marginal tax rate today and in retirement.

Educational calculators — always consult a licensed professional before making financial decisions.

Your inputs

Out-of-pocket contribution

After-tax cash you have to invest today

Years invested

Expected annual return

Marginal tax rate now

Marginal tax rate in retirement

RRSP wins

$10,730

more after-tax over 25 yr

RRSP after-tax value

$53,648

taxed at 25% on exit

TFSA after-tax value

$42,919

tax-free on exit

After-tax value at withdrawal

RRSPTFSA

The mechanics

Out-of-pocket today$10,000

RRSP pre-tax invested (grossed up)$16,667

RRSP gross at withdrawal$71,531

RRSP after retirement tax$53,648

TFSA tax-free value$42,919

ASSUMPTIONS — Both options start from the same out-of-pocket cash. The RRSP amount is grossed up by the refund at your 40% rate today (so more is invested pre-tax), grows, then the full balance is taxed at 25% on withdrawal. The TFSA is funded with after-tax dollars and comes out tax-free. When your tax rate is lower in retirement than today, the RRSP typically wins; when rates are equal, the two are identical. Returns are assumed constant and government-benefit clawbacks are ignored.

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