Free tool · Tax-deferred vs tax-free
TFSA vs RRSP — head-to-head.
The classic Canadian question. We model both accounts side-by-side, and let you choose what happens to the RRSP refund — most calculators quietly skip this, but the choice is what makes or breaks the comparison. Adjust the inputs to see which account wins for your situation.
Where to start
Drag the sliders to model your situation. Use the toggle to choose what happens to the RRSP refund — that single choice often flips the answer.
Annual gross income today
$120,000
Sets your current marginal tax rate.
Annual contribution (gross $)
$10,000
Same dollar amount goes into the TFSA or RRSP for fair comparison.
Years until withdrawal
25 years
How long the contribution stays invested before you withdraw.
Annual growth rate
6.0%
Long-run net-of-fees return assumption.
Income at withdrawal (retirement)
$60,000
RRSP withdrawals stack on top of this, taxed at the resulting marginal rate.
What happens to the RRSP refund?
Refund grows tax-free in a TFSA — the apples-to-apples comparison.
How we compare: Both accounts get the same gross dollar contribution. The RRSP also generates a refund (your contribution × current marginal rate). What you do with that refund changes the answer dramatically — try the toggle above to see for yourself.
TFSA
Winner
Tie
Tax-free savings account
Out-of-pocket today$10,000
Balance at withdrawal
Principal$10,000
Growth (25 yrs)+$32,919
Tax on withdrawal$0
Net after tax$42,919
RRSP + refund in TFSA
Winner
Tie
Registered retirement savings plan
Contribution to RRSP$10,000
Refund (at 38.29%)+$3,829
RRSP at withdrawal
Principal$10,000
Growth+$32,919
Tax @ 28.20%-$12,103
Net RRSP$30,816
Refund reinvested in TFSA
Principal$3,829
Growth (tax-free)+$12,604
Net refund$16,433
Net after tax$47,249
★
RRSP wins by $4,330 — at this income level, your current marginal rate (38.3%) is meaningfully higher than your retirement rate (28.2%), so the deferral arbitrage works in your favour. Reinvesting the refund makes the math fair.
Want to talk through your specific situation?