About the RRSP Calculator
This RRSP calculator shows the two halves of a Registered Retirement Savings Plan contribution: the tax refund you get now and the tax-deferred growth you build for retirement. Enter your yearly contribution, current balance, income, marginal tax rate and expected return to see the refund each year and your projected RRSP balance.
Because RRSP withdrawals are taxed as income, the calculator also estimates the after-tax value at your expected retirement tax rate. If you reinvest each refund — for example in a TFSA — it adds that pot too, which is how an RRSP delivers its full advantage when your tax rate falls in retirement.
Your new RRSP room each year is 18% of the previous year’s earned income, up to $33,810 for 2026, plus any unused room carried forward and less any pension adjustment. Enter a combined federal and provincial marginal rate; refunds are only an estimate, since the actual refund depends on your full return. Contributions are made at year-end and returns compound annually.
With the default inputs, the rrsp balance at retirement is $655,941.89. Change any value above to recalculate instantly.
How to use the rrsp calculator
- 1Enter how much you plan to contribute each year and your current RRSP balance.
- 2Enter last year’s earned income to estimate your new contribution room.
- 3Enter your combined federal and provincial marginal tax rate, and your expected rate in retirement.
- 4Set the years until retirement and an expected return.
- 5Choose whether to reinvest your refund, then compare the after-tax totals.
Formula and method
The current balance B grows at the annual return r, and each yearly contribution C is added at the end of the year, so the RRSP follows the standard future-value-of-an-annuity formula. The tax refund is the contribution multiplied by your combined marginal rate, because the deduction removes those dollars from the top of your taxable income.
If refunds are reinvested, they form a second annuity of C × t_now per year growing at the same rate (as in a TFSA). The RRSP itself is taxed on withdrawal, so its after-tax value is the balance × (1 − retirement tax rate). New room is 18% of prior-year earned income, capped at the annual maximum.
- B
- Current RRSP balance
- C
- Yearly RRSP contribution
- r
- Expected annual return
- t_now
- Combined marginal tax rate today
- n
- Years until retirement
Worked examples
$10,000 a year for 25 years at a 30% marginal rate
Each $10,000 contribution produces about a $3,000 refund. After 25 years at 6% the RRSP grows to about $655,942, worth about $491,956 after 25% withdrawal tax; reinvested refunds add about $164,594 more.
High earner at the 2026 maximum
With $220,000 of income the room is capped at $33,810. Contributing the maximum at a 48% rate returns about $16,229 a year in tax. Over 15 years at 5%, with a $150,000 start, the RRSP reaches about $1.04 million.
Frequently asked questions
What is the RRSP contribution limit for 2026?+
Your 2026 RRSP deduction limit is 18% of your 2025 earned income, up to a maximum of $33,810, plus any unused room carried forward from earlier years, minus any pension adjustment. The dollar maximum rises to $35,390 for 2027. Your exact limit is on your Notice of Assessment or CRA My Account.
How much tax refund will I get from an RRSP contribution?+
Roughly your contribution multiplied by your combined federal and provincial marginal tax rate. A $5,000 contribution at a 30% marginal rate cuts your tax by about $1,500, though a very large contribution can drop you into a lower bracket.
What is the RRSP deadline?+
Contributions made in the first 60 days of a year can be deducted on the previous year’s return, so the deadline is usually around March 1. You can also carry a deduction forward to a later, higher-income year.
RRSP or TFSA — which is better?+
An RRSP is better when your tax rate now is higher than it will be in retirement; a TFSA is better when your rate is low now or could be higher later, and it does not affect income-tested benefits like OAS and GIS. Many people use both.
What happens to my RRSP at 71?+
By December 31 of the year you turn 71 you must convert the RRSP to a RRIF, buy an annuity or withdraw it. A RRIF then requires a minimum withdrawal each year, taxed as income.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.