TFSA Vs RRSP Calculator

The decision of whether to ex-ponent a TFSA or an RRSP is one that every Canadian must make. Each registered account has its own specific rules about contributions and withdrawals and comes with different tax implications. Understanding how each works and which one would best help you achieve your savings goals is essential.

While both accounts are similar in that they both shield investments from taxes, the difference lies in when and how they do so. RRSPs allow you to deduct contributions, but when you withdraw funds from the account they are fully taxable at your marginal rate. TFSAs, on the other hand, do not give you a tax break on contributions but you don’t pay any taxes on withdrawals.

How Exponent’s Portfolio Managers Guide You to Smart Investments in Canada

Using our TFSA vs RRSP Calculator is a great way to see how these two accounts differ and which one may be more beneficial for your goals. This calculator takes into consideration your taxable income at the time of contribution and withdrawal, years of growth and your average annual return. It also helps you determine the optimal split between TFSA and RRSP contributions.

The TFSA calculator assumes that you have the maximum amount of contribution room (which is $55,867 in 2025). If you have more unused TFSA contribution room, you can use this to increase your calculations. This tool does not take into account other sources of income that may impact your tax situation, such as company pensions or government benefits like Old Age Security (OAS). If you are interested in opening a TFSA, RRSP or FHSA, Wealthsimple is here to help.…