Registered vs Non-Registered Growth Calculator Canada

What the calculator does

The calculator shows what one pre-tax dollar is worth after tax once it has compounded in an RRSP, in a TFSA and in an ordinary taxable account. It runs all three over the same horizon at the same return and charges each the tax it would actually pay, with all three costing the same out of pocket.

Why the contribution amounts differ

A dollar of untaxed salary can go into an RRSP whole, because the deduction cancels the tax on it. The same dollar cannot go into a TFSA or brokerage account whole; it is taxed first and only the rest is invested.

So a $10,000 RRSP contribution and a $10,000 TFSA contribution are not comparable. At a marginal rate in the low forties, the RRSP contribution costs a little under $6,000 after the refund, while the TFSA contribution costs the full $10,000. The calculator starts from a pre-tax figure: the whole amount goes into the RRSP and produces a refund, and the after-tax remainder goes into the TFSA and the taxable account.

A worked example

Take $10,000 of pre-tax income in Ontario at a 43.41% marginal rate, a 6% return for 25 years and a 30% rate at withdrawal. The RRSP takes the full $10,000 and the refund is $4,341, so the out-of-pocket cost is $5,659, the amount that goes into the TFSA and the taxable account. The taxable portfolio is 20% interest, 30% eligible dividends and 50% capital growth.

After tax, the RRSP is worth about $30,043, the TFSA about $24,288 and the taxable account about $18,046. The RRSP leads the TFSA by about $5,755, entirely because of the lower rate at withdrawal. The taxable account paid about $3,868 in tax along the way, cutting its return to about 4.75% a year, and the better registered account is about $11,997 ahead of it.

The RRSP and the TFSA differ only in when tax is paid

Set your rate today and at withdrawal to the same number and the RRSP and TFSA come out identical to the cent, whatever the return, horizon or amount. Taxing at the front and then growing gives the same answer as growing and then taxing at the back at the same rate. Every other difference comes from the rates differing or from the accounts’ non-tax features.

If you expect a lower marginal rate when the money comes out, the RRSP wins by the difference; if higher, the TFSA wins. The real work is estimating your future rate honestly. RRSP and RRIF withdrawals are ordinary income that can also reduce Old Age Security and income-tested benefits, which effectively raises the later rate above the headline bracket.

What the taxable account loses

The taxable account starts with the same after-tax amount as the TFSA, so the gap between them is tax drag from two sources.

The first is annual tax on distributed income. Interest is taxed at your full marginal rate in the year it is received. Eligible dividends from Canadian corporations are grossed up and then reduced by federal and provincial dividend tax credits, leaving a much gentler effective rate, which can even be negative at low incomes. Each dollar paid in tax each year stops compounding, and that is the expensive part over a long horizon.

The second is tax on the capital gain at sale. Only the included portion enters income, and it is deferred until you sell, so it costs much less than the annual drag. The calculator tracks adjusted cost base as after-tax income is reinvested, so income taxed once is not taxed again as a gain.

Change the split between interest, dividends and growth in the advanced options and the gap moves noticeably: a bond-heavy taxable account loses far more than one holding Canadian equities that pay eligible dividends and mostly grow. That is the basis of asset location.

Contribution room

The calculator shows what share of this year’s TFSA limit the after-tax contribution would use and what share of the RRSP dollar limit the pre-tax contribution would use; in the example, 80.8% and 29.6%. Your real room depends on your history. TFSA room accumulates from the year you turned 18 and is restored the year after a withdrawal. RRSP room is 18% of the previous year’s earned income up to the dollar limit, less any pension adjustment, and unused room carries forward. Your notice of assessment has the actual numbers. If either share exceeds 100%, split the plan across years or put the excess in the taxable account.

Reading the result

Check that the out-of-pocket figure is the same for all three, then compare the after-tax values. The RRSP to TFSA gap is entirely the rate difference you entered, so move the later rate a few points either way to see how sensitive it is. The gap between the better registered account and the taxable one is the value of the shelter, usually large enough on a long horizon with an income-heavy portfolio to justify filling unused registered room first. The taxable account’s after-tax annual return, set beside the return you entered, shows how much of the gross return the shelter protects.

This calculator provides an estimate for information only and is not tax or investment advice.

About This Tool: Registered vs Non-Registered

Registered vs non-registered: use this tool to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.