RRSP calculator
See your contribution room, the exact refund your contribution earns at your income and province, and what that money grows into by retirement.
Room = 18% of this, capped at $32,490.
Contributing $12,000 lowers your taxable income, returning roughly $3,592 at tax time — so it effectively costs you $8,408 out of pocket.
in 25 years at 6% — growing completely tax-sheltered.
RRSP withdrawals are taxed as income in retirement, so the real benefit is deferring tax from your high-earning years to (usually) a lower-income retirement — plus decades of tax-free compounding along the way.
RRSP room = 18% of last year's earned income, capped at $32,490 (2025), plus carry-forward. Your refund = contribution × marginal rate, and growth inside the account is tax-sheltered until you withdraw.
RRSP vs TFSA vs FHSA
| RRSP | TFSA | FHSA | |
|---|---|---|---|
| Tax deduction now | Yes | No | Yes |
| Tax-free withdrawals | No — taxed as income | Yes | Yes (first home) |
| Room restored after withdrawal | No | Yes, next year | No |
| Annual limit | 18% of income (max $32,490) | $7,000 | $8,000 |
| Best for | High earners deferring tax | Flexibility, lower earners | First-time buyers |
Frequently asked questions
How much RRSP room do I have?
Your annual room is 18% of your previous year's earned income, up to a yearly maximum ($32,490 for 2025), minus any pension adjustment. Unused room carries forward indefinitely, so your real limit is often much larger — check your CRA Notice of Assessment for the exact figure.
How much tax will an RRSP contribution save me?
Your refund equals your contribution multiplied by your marginal tax rate. Someone in a 40% bracket who contributes $10,000 gets roughly $4,000 back, meaning the contribution effectively costs $6,000. The higher your income, the more valuable the deduction.
RRSP or TFSA — which should I use first?
As a rule of thumb, favour an RRSP when your current tax rate is higher than the rate you expect in retirement (typically higher earners), and a TFSA when it's lower or similar (typically lower earners and the young). A TFSA also offers more flexibility, since withdrawals aren't taxed and room is restored the following year.
What happens if I over-contribute to my RRSP?
You get a $2,000 lifetime cushion with no penalty. Beyond that, the CRA charges 1% per month on the excess until you withdraw it, so it's worth confirming your room before making a large contribution.
Related tools
Researching and writing about Canadian registered accounts and retirement since 2026.
“RRSP Calculator: Contribution Room & Tax Refund — VaultNerd” — VaultNerd, https://www.vaultnerd.com/tools/rrsp-calculator, updated August 2026.
- CRA — RRSP contribution limits and deduction room
- CRA — RRSP over-contribution rules and the $2,000 cushion