TFSA vs RRSP Calculator
Compare Tax-Free Savings Account and Registered Retirement Savings Plan strategies. Understand how current vs. retirement tax rates and refund reinvestment impact your optimal choice.
Growth Comparison
$10,000 over 20 years • 7% return
Comparison Settings
Include benefit clawbacks (CCB, GIS, etc.)
RRSP refund is reinvested (fair comparison)
TFSA Final
$38,697
3.9x multiple
RRSP Final
$48,371
4.8x multiple
RRSP Wins By
$9,674
25.0% advantage
RRSP Tax Refund
$6,667
reinvested
Detailed Breakdown
Lower retirement METR favors RRSP (tax arbitrage)
Key Considerations
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Frequently Asked Questions
About This Calculator
Choosing between a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) is one of the most important financial decisions for Canadians. Our free TFSA vs RRSP calculator helps you compare these two powerful savings vehicles based on your current marginal tax rate, retirement tax rate, and refund reinvestment strategy. The key difference between TFSA and RRSP comes down to when you pay taxes. RRSP contributions provide an immediate tax deduction, reducing your taxable income today. However, withdrawals in retirement are taxed as regular income. TFSAs use after-tax dollars, but all growth and withdrawals are completely tax-free forever. For most Canadians, the optimal choice depends on your Marginal Effective Tax Rate (METR) - which includes benefit clawbacks like CCB and GIS. If your current METR is significantly higher than your expected retirement rate, RRSPs usually win. If rates are similar, or you expect higher income in retirement, TFSAs provide better long-term value. Our calculator models both scenarios over 20-40 years, showing you the exact after-tax value of each strategy. We account for RRSP refund reinvestment (critical for fair comparison!), compound growth, and inflation. The results show you which account type maximizes your retirement savings based on your specific situation.
Key Features
- Compare TFSA vs RRSP with your actual tax rates
- Model refund reinvestment strategies (increases RRSP value by 30-50%)
- See 20-40 year projections with compound growth
- Includes METR calculations (not just marginal tax rate)
- Interactive charts showing growth over time
- Step-by-step math explanations
- Mobile-friendly interface with real-time updates
When to Use This Calculator
- Young professionals deciding where to invest first $10,000
- High-income earners comparing tax arbitrage opportunities
- Pre-retirees planning optimal withdrawal strategies
- Families with Canada Child Benefit considering METR impact
- Anyone confused by conflicting TFSA vs RRSP advice online