Use this RRSP calculator to project how your registered retirement savings plan will grow over time. Enter your current balance, annual contributions, expected return, and time horizon to see your projected retirement savings and estimated tax refund.
How the RRSP calculator works
This calculator uses monthly compounding to project your RRSP growth. Enter your current balance and annual contribution amount, and the calculator distributes contributions evenly across 12 months. Each month, your balance grows by the monthly rate (annual rate ÷ 12) before the next contribution is added.
The estimated tax refund shown is based on your total new contributions multiplied by your marginal tax rate. This represents the cumulative tax savings from RRSP deductions over the full investment period — one of the most significant advantages of RRSP investing.
RRSP growth formula:
Each month: Balance = Previous Balance × (1 + r/12) + Monthly Contribution
Where r is the annual rate of return.
2026 RRSP contribution limit
The RRSP contribution limit for the 2025 tax year (deductible on your 2025 return filed in 2026) is 18% of earned income up to a maximum of $32,490. Unused contribution room carries forward indefinitely.
| Tax Year | Maximum New Room | Deadline |
|---|---|---|
| 2021 | $27,830 | Mar 1, 2022 |
| 2022 | $29,210 | Mar 1, 2023 |
| 2023 | $30,780 | Feb 29, 2024 |
| 2024 | $31,560 | Mar 3, 2025 |
| 2025 | $32,490 | Mar 2, 2026 |
Your actual contribution room includes unused room from previous years. Check your CRA My Account or most recent Notice of Assessment for your exact limit.
RRSP tax deduction and refund
One of the most powerful advantages of the RRSP is the immediate tax deduction. Every dollar you contribute reduces your taxable income by one dollar. The tax savings depend on your marginal tax rate:
| Marginal Tax Rate | Tax Refund on $10,000 Contribution |
|---|---|
| 20.05% (lowest federal + Ontario) | $2,005 |
| 29.65% | $2,965 |
| 33.89% | $3,389 |
| 43.41% | $4,341 |
| 53.53% (highest combined) | $5,353 |
This refund is real money returned to you. Many Canadians reinvest their RRSP tax refund, further accelerating growth. If you contribute $10,000 per year at a 33% tax rate and reinvest the $3,300 refund each year, the compounding effect is substantial over 25–30 years.
Use the Income Tax Calculator to determine your marginal tax rate.
RRSP vs TFSA comparison
Both accounts shelter investment growth from tax, but they work in opposite directions:
| Feature | RRSP | TFSA |
|---|---|---|
| Tax on contributions | Deductible (reduces taxable income) | Not deductible |
| Tax on growth | Tax-deferred | Tax-free |
| Tax on withdrawals | Fully taxable as income | Tax-free |
| Contribution room | 18% of earned income (max $32,490) | $7,000/year (2026) |
| Unused room | Carries forward | Carries forward |
| Withdrawal room | Lost permanently | Added back next January |
| Age limit | Must convert to RRIF by 71 | No age limit |
| Best for | High earners expecting lower retirement income | Any income level, flexible savings |
General rule: If your marginal tax rate today is higher than your expected tax rate in retirement, the RRSP wins. If your rate is the same or lower, the TFSA is often better. Most Canadians should use both.
Use the TFSA Calculator to compare growth in a tax-free savings account.
RRSP Home Buyers’ Plan (HBP)
The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free to purchase a qualifying home. Key rules:
- You must be a first-time home buyer (you and your spouse have not owned a home in the current year or previous four calendar years)
- The amount must be repaid to your RRSP over 15 years, starting the second year after the withdrawal
- If you miss a repayment, the scheduled amount is added to your taxable income for that year
- You can also use the FHSA in combination with the HBP
RRSP Lifelong Learning Plan (LLP)
The LLP allows you to withdraw up to $10,000 per year (maximum $20,000 total) from your RRSP to finance full-time education for yourself or your spouse. The withdrawn amount must be repaid over 10 years.
Spousal RRSP and income splitting
A spousal RRSP is a powerful income-splitting strategy. The higher-income spouse contributes to the lower-income spouse’s RRSP using the contributor’s room and receives the tax deduction. In retirement, the lower-income spouse withdraws at a lower marginal rate, reducing the couple’s overall tax burden.
The three-year attribution rule applies: if the lower-income spouse withdraws within three calendar years of a contribution, the withdrawal is attributed back to the contributor for tax purposes.
RRSP withdrawal taxes
RRSP withdrawals (outside the HBP and LLP) are subject to withholding tax at source and added to your taxable income:
| Withdrawal Amount | Withholding Tax (outside Quebec) |
|---|---|
| Up to $5,000 | 10% |
| $5,001 – $15,000 | 20% |
| Over $15,000 | 30% |
The withholding tax is a prepayment — the actual tax owed is calculated when you file your return. If the withholding exceeds your actual tax, you receive a refund. If it is less, you owe the difference.
RRSP to RRIF conversion
By December 31 of the year you turn 71, you must convert your RRSP to one of three options:
- RRIF — Most common. You must withdraw a minimum percentage each year based on your age. Use the RRIF Calculator to estimate minimum withdrawals.
- Annuity — Purchase a life annuity or term annuity for guaranteed income. Use the Annuity Calculator to estimate payments.
- Lump-sum withdrawal — Withdraw the entire balance (fully taxable in that year).
| Age | RRIF Minimum Withdrawal % |
|---|---|
| 72 | 5.28% |
| 75 | 5.82% |
| 80 | 6.82% |
| 85 | 8.51% |
| 90 | 11.92% |
| 94+ | 20.00% |
Average RRSP balance by age
| Age Group | Median RRSP Balance | Average RRSP Balance |
|---|---|---|
| 25–34 | $15,000 | $28,000 |
| 35–44 | $40,000 | $75,000 |
| 45–54 | $75,000 | $140,000 |
| 55–64 | $110,000 | $215,000 |
| 65+ | $95,000 | $195,000 |
Approximate figures based on Statistics Canada data. The average is significantly higher than the median due to high-balance accounts pulling the average up.
RRSP investment strategies
Asset allocation by age
A common approach is to hold a higher percentage of equities when young and shift toward bonds and GICs as retirement approaches:
- 20s–30s: 80–100% equities (broad market ETFs like XEQT or VEQT)
- 40s–50s: 60–80% equities, 20–40% bonds
- 60s+: 40–60% equities, 40–60% bonds and GICs
Contribution timing
Contributing early in the year gives your money more time to compound. A $6,000 lump-sum contribution on January 1 typically produces a higher ending balance than 12 monthly $500 contributions, assuming positive expected returns.
Reinvesting your tax refund
If you earn a $2,000 tax refund from your RRSP contribution and reinvest it into the RRSP (assuming you have room), you effectively contribute more at no additional out-of-pocket cost. Over 30 years, this strategy alone can add tens of thousands of dollars to your retirement savings.
Related calculators
- TFSA Calculator — Project tax-free investment growth in your TFSA
- FHSA Calculator — Estimate growth in your First Home Savings Account
- RRIF Calculator — Estimate minimum RRIF withdrawals in retirement
- Retirement Calculator — Plan your total retirement income from all sources
- Compound Interest Calculator — See the power of compound growth on any investment
- Investment Calculator — General investment growth projections
- Income Tax Calculator — Find your marginal tax rate for RRSP deductions
- Dividend Calculator — Project dividend income from your RRSP holdings
Open an RRSP and start investing
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