TFSA vs RRSP Calculator

The classic Canadian question. Enter your tax rates now vs in retirement — the math does the rest. Assumes any RRSP refund is reinvested (the fair comparison).

Your situation

Amount to invest (after-tax dollars)

Your marginal tax rate today (%) Use the tax calculator to find your marginal rate.

Expected marginal tax rate in retirement (%)

Years invested

Expected annual return (%)

—

Enter your numbers

After-tax value at withdrawal

TFSA

$—

RRSP

$—

Non-registered

$—

RRSP gross-up (refund reinvested)	$—
TFSA advantage over RRSP	$—

The rule of thumb, proved

If your tax rate is the same now and in retirement, TFSA and RRSP are mathematically identical. The winner is decided by the rate difference:

Higher rate now → RRSP wins (deduction worth more today than the tax later).
Higher rate later → TFSA wins (pay the lower tax now).
Same rate → tie. Then choose on flexibility: TFSA withdrawals don't affect benefits like GIS or trigger OAS clawback; RRSPs give withholding-tax-free compounding room.

Non-registered assumes growth taxed annually at your current marginal rate (a simplification — capital gains get preferential treatment, so real taxable accounts do a bit better than shown).