RRSP / TFSA Calculator
Estimate your RRSP and TFSA contribution room, tax savings, and investment growth over time. Updated for 2026.
RRSP vs TFSA — Which Is Right for You?
The RRSP and TFSA are Canada's two primary tax-advantaged savings vehicles, and they work in opposite ways. RRSP contributions reduce your taxable income now — you get a tax refund immediately, but withdrawals in retirement are taxed as income. TFSA contributions are made with after-tax dollars, but all growth and withdrawals are completely tax-free.
The classic rule of thumb: use RRSP when your current tax rate is higher than your expected retirement rate. Use TFSA when you expect the reverse. In practice, most Canadians benefit from both: maximize RRSP first if you're in a higher income bracket, put the tax refund into your TFSA, and enjoy tax-sheltered growth in both accounts simultaneously.
One key TFSA advantage many miss: withdrawn amounts are re-added to your contribution room the following calendar year. You can withdraw for a major expense and re-contribute the next year — something you cannot do with an RRSP without permanently losing contribution room.
Frequently Asked Questions
$32,490 or 18% of your 2024 earned income, whichever is lower. Plus any unused room carried forward from prior years.
$7,000 for 2026 (same as 2025). Cumulative room since 2009 is $102,000 as of 2026 for eligible Canadians.
There is a $2,000 lifetime buffer. Beyond that, the CRA charges 1% per month on the excess. Always verify available room before contributing.