C
MathsStatisticsAlgebraGeometryCalculusEveryday MathBusinessFinanceTaxSalaryE-commerceMarketingEducationHealthEngineeringDate and TimeLifestyleSustainability
🇨🇦 CanadaCADv1.0Active

RRSP vs TFSA vs FHSA Comparison Calculator

Compare RRSP, TFSA, and FHSA accounts side by side to find the best fit for your savings goals. This calculator models tax-deferred, tax-free, and hybrid growth over your chosen time horizon.

Regional Rule Context

JurisdictionCanada
CurrencyCA$ (CAD)
Effective fromJan 1, 2025
Version1.0
Last reviewedMar 1, 2026
Next reviewJul 1, 2026
Source: Canada Revenue Agency (CRA)

Canada Rates and Rules

Enter Values

Amount you plan to invest each year

Number of years you plan to contribute

0%100%

Average annual investment return

0%100%

Your current combined federal and provincial marginal rate

0%100%

Your expected marginal tax rate in retirement

Result

Enter values above and click Calculate to see your result.

AI Assistant

Ask about this calculator

I can help you understand the rrsp vs tfsa vs fhsa comparison calculator formula, interpret your results, and answer follow-up questions.

Try asking

Canadian RRSP vs TFSA vs FHSA comparison calculator for 2026. RRSP: contributions are tax-deductible, growth is tax-deferred, withdrawals are taxed as income. TFSA: contributions are not deductible, growth and withdrawals are completely tax-free. FHSA: contributions are deductible (like RRSP), growth and withdrawals for a first home are tax-free (like TFSA). The optimal choice depends on your current vs future tax rate and whether you are saving for a home or retirement.

Disclaimer: This calculator uses publicly available rules effective as of Jan 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Mar 1, 2026.

Formula

RRSP Future = Amount x (1+r)^n + Tax Refund reinvested TFSA Future = Amount x (1+r)^n (tax-free) FHSA Future = Amount x (1+r)^n + Tax Refund (tax-free withdrawal)

RRSP contributions are tax-deductible but withdrawals are taxed at your retirement rate. TFSA contributions use after-tax dollars but grow and withdraw tax-free. FHSA combines both: contributions are deductible and qualified withdrawals for a first home are tax-free.

Canada FAQs

Which is better, RRSP or TFSA?

RRSP is better if your current marginal tax rate is higher than your expected retirement rate (you get a bigger deduction now than the tax you pay later). TFSA is better if your rate will be the same or higher in retirement. For most middle-income earners, RRSP has a slight edge. For lower-income earners, TFSA is usually better.

When should I use an FHSA instead?

If you are a first-time home buyer, FHSA is the best option for home savings because it combines RRSP benefits (tax deduction) with TFSA benefits (tax-free withdrawal). You get the deduction when you contribute and pay zero tax when you withdraw for a home. FHSA is strictly better than both RRSP and TFSA for this specific goal.

What are the contribution limits for each account?

RRSP: 18% of previous year earned income up to $32,490 for 2025, with unused room carrying forward indefinitely. TFSA: $7,000 per year for 2024-2025 ($102,000 cumulative from 2009). FHSA: $8,000 per year, $40,000 lifetime, with $8,000 carry-forward.

Can I contribute to all three accounts?

Yes. RRSP, TFSA, and FHSA have separate contribution limits. If you have the cash flow, maximizing all three provides the best tax-sheltered growth. Priority order for most first-time buyers: FHSA first, then TFSA, then RRSP.

What happens to FHSA if I never buy a home?

You can transfer the balance to your RRSP or RRIF without affecting your RRSP contribution room. This effectively converts your FHSA into RRSP savings. Alternatively, you can withdraw the funds but they will be fully taxable, similar to an RRSP withdrawal.

How does this calculator model the comparison?

It projects each account over your specified time horizon using the same contribution amount and expected return. For RRSP, it models the tax deduction now and tax on withdrawal at your retirement rate. For TFSA, no deduction and no withdrawal tax. For FHSA, deduction now and no withdrawal tax. The after-tax future value shows the true comparison.

More Canada Calculators

Canada Sales Tax CalculatorCanada Salary CalculatorCanada Take Home Pay CalculatorCanada Payroll CalculatorCanada Income Tax CalculatorCanada CPP and EI CalculatorCanada Hourly to Salary CalculatorCanada Salary to Hourly CalculatorCanada Biweekly Pay CalculatorCanada Weekly Pay CalculatorCanada Monthly Pay CalculatorCanada Bonus Tax CalculatorCanada Contractor Tax CalculatorOntario Payroll CalculatorCanada Tip CalculatorCanada GST CalculatorOntario Land Transfer Tax CalculatorToronto Land Transfer Tax CalculatorOntario Salary CalculatorAlberta Salary CalculatorCanada FHSA CalculatorCanada Capital Gains Tax CalculatorCanada Dividend Tax CalculatorCanada Child Benefit CalculatorBC Property Transfer Tax CalculatorCanada Overtime CalculatorCanada Vacation Pay CalculatorCanada Severance Pay CalculatorCanada EI Maternity and Parental Leave CalculatorCanada Employer Health Tax CalculatorCanada Rental Income Tax CalculatorCanada Small Business (CCPC) Tax CalculatorCPP Retirement Pension CalculatorCanada Mortgage Stress Test Calculator
View all Canada calculators
🇨🇦 Canada CalculatorsAll Calculators

Secure and Private

All calculations run locally. Your Canadian tax and payroll data never leaves your browser.

Precise Canadian Calculations Powered by Calculory AI