Money · RRSP vs TFSA
RRSP vs TFSA Optimiser
RRSP or TFSA first? Compares your marginal tax rate now against your expected retirement bracket to give a personalised recommendation for your province.
Instant result
Plain-English why
Copyable takeaway
What this means
No waffle. Just the number and how it was worked out.
Formula used
RRSP advantage = current marginal rate minus expected retirement marginal rate. Prioritise RRSP if the advantage is >5 percentage points and RRSP room exists.
Worked example
Earning $90,000 in Ontario expecting to retire on $50,000: significant rate differential makes RRSP more attractive. Earning $40,000 with similar retirement income: TFSA wins.
Common questions
What is the core RRSP vs TFSA trade-off?
RRSP contributions reduce your tax now, but withdrawals are taxed in retirement. TFSA contributions come from after-tax income, but withdrawals are tax-free. If you expect to be in a lower bracket in retirement, RRSP wins. If not, TFSA is often better.
Should I do both?
Yes, if possible. The recommendation is about which to prioritise when you cannot max both. At higher incomes, RRSP usually wins first. At lower incomes, the TFSA is often the better starting point.
Plain-English summary
The result summary for this calculator will live here.
This section translates the result into a short, direct takeaway rather than leaving the page at a bare number.
Related instruments
Keep going
Percentage Change Engine
Work out the percentage increase or decrease between two values with a clear result and worked explanation.
Open verdictVAT Engine
Add or remove VAT from a price with clear totals, tax breakdown, and net versus gross context.
Open verdictSubscription Shame Index
Find out how much your subscriptions are quietly costing you in money and attention.
Open verdict