How to use this RRSP calculator
- Current balance: what's in your RRSP today.
- Yearly contribution: how much you plan to add each year.
- Years to invest and expected return: how long the money grows and the yearly return you want to assume.
- Marginal tax rate: your combined federal and provincial rate on your last dollar of income. It sets the size of your tax refund.
- Contribution room: last year's earned income and any unused room from your Notice of Assessment.
You'll see your projected RRSP value, the growth, your estimated tax refund each year and in total, and a warning if your contribution is above your estimated limit.
How the calculation works
Worked example
Reinvesting the refund each year, for example into your RRSP or a TFSA, makes the benefit much larger than spending it.
RRSP contribution limits
Your RRSP deduction limit is set by the CRA. The dollar maximum for 2026 is $33,810; for 2027 it is $35,390. You only reach the maximum with earned income of about $187,833 or more (18% × $187,833 ≈ $33,810).
If you belong to a workplace pension plan, your room is reduced by a pension adjustment, which this calculator doesn't know about. Always check the figure on your Notice of Assessment before you contribute.
RRSP or TFSA: a simple comparison
The difference comes down to when you pay tax. Take $6,000 of pre-tax income, a 30% marginal rate today and 6% growth for 25 years (money grows about 4.29 times):
- RRSP: the full $6,000 goes in because the contribution is deducted. It grows to about $25,751. Withdrawn at a 30% rate, you keep about $18,026; at a 20% rate in retirement, about $20,601.
- TFSA: you pay tax first, so $4,200 goes in. It grows to about $18,026, and withdrawals are tax-free.
With the same tax rate now and later, the two come out the same. The RRSP wins when your tax rate in retirement is lower than today, which is why it often suits people in higher brackets.
How to make the most of your RRSP
- Contribute regularly. Monthly pre-authorized contributions are easier than a large lump sum before the deadline.
- Reinvest your refund. Putting the refund back into savings multiplies its effect.
- Mind your tax bracket. RRSP deductions are worth most in years when your marginal rate is high.
- Compare with a TFSA. If your income is low this year, a TFSA may make more sense, saving RRSP room for higher-income years.
- Know the special programs. The Home Buyers' Plan and Lifelong Learning Plan let you withdraw for a first home or education and repay over time; check the current rules on canada.ca.
Finding your marginal tax rate
Your marginal tax rate is the combined federal and provincial rate on your next dollar of income, and it decides how much each RRSP dollar saves. It depends on your income and province, and it isn't the same as your average tax rate (total tax divided by total income), which is lower. The Government of Canada and your province publish their tax brackets each year; add the federal and provincial rates for your bracket to find your combined rate.
If your income will be noticeably higher in a future year, consider waiting: you can contribute now and carry the deduction forward to a year when your marginal rate is higher.
Checking your RRSP each year
Each spring, after your Notice of Assessment arrives, update the calculator with your new balance, your latest earned income and the unused room the CRA reports. That keeps your contribution plan within your limit and shows whether you're on track for the amount you want at retirement.
What this calculator doesn't include
The projection assumes a steady return, a contribution at the end of each year and no withdrawals. It doesn't include fees, pension adjustments, spousal RRSPs, or tax on withdrawals in retirement, and the refund estimate assumes your whole contribution is deducted at one marginal rate. Values are in future dollars; use our inflation calculator to see them in today's money. Confirm your limits with the CRA.