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RRSP vs TFSA Comparison Calculator
Compare these two powerful savings accounts and see which is better for your situation.
RRSP vs TFSA Assistant
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Describe your savings situation
Tell me your income, expected retirement income, and how much you want to save. I'll help you decide between RRSP and TFSA.
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| Feature | RRSP | TFSA |
|---|---|---|
| 2025 Contribution Limit | $32,490 | $7,000 |
| Tax deduction on contribution | ||
| Tax-free growth | ||
| Tax-free withdrawals | ||
| Withdrawal room restored | ||
| Affects government benefits | Yes (at withdrawal) | No |
| Best if tax rate will be... | Lower in retirement | Same or higher |
RRSP vs TFSA: Which is Better?
Both RRSPs and TFSAs are excellent savings vehicles, but they work differently. The best choice depends on your current income, expected retirement income, and financial goals.
Choose RRSP When:
- • You're in a high tax bracket now
- • You expect lower income in retirement
- • You want to reduce this year's tax bill
- • You're saving for a first home (Home Buyers' Plan)
Choose TFSA When:
- • You're in a lower tax bracket now
- • You expect similar or higher income in retirement
- • You want flexibility to withdraw without tax consequences
- • You want to protect government benefits like OAS and GIS
Disclaimer: This calculator provides estimates for illustrative purposes. Your actual results will vary based on investment returns, tax rates, and other factors. Consult a financial advisor for personalized advice.