RRSP vs TFSA Calculator
The RRSP-vs-TFSA debate has a clean answer hiding inside it: when your tax rate in retirement is lower than it is today, the RRSP wins; when it’s higher, the TFSA wins; when they match, it’s a tie. This tool does the apples-to-apples math on the same out-of-pocket cost.
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Winner — extra after-tax dollars
Because the retirement rate (30%) is below today’s (43%), the RRSP deduction is worth more than the tax paid later — it wins by $75,078, and throws off $113,158 in refunds along the way.
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Frequently asked
Is an RRSP or TFSA better?
Mathematically, the RRSP wins when your tax rate in retirement is lower than today, and the TFSA wins when it’s higher. If they’re equal, the result is identical — so the choice comes down to flexibility and benefit clawbacks.
Does this account for the RRSP tax refund?
Yes. The comparison holds your out-of-pocket cost constant and grosses up the RRSP by the refund it generates, so it’s a fair apples-to-apples test.
Why might the TFSA still be better even in a tie?
TFSA withdrawals don’t count as income, so they don’t reduce OAS, GIS, or other income-tested benefits — and the room is re-contributable. That can tip a tie toward the TFSA for retirees.
Illustrative estimates for education only — not investment, tax, or insurance advice. Figures assume constant returns and simplified rules; your situation will differ. Speak with a licensed professional before acting.