How I Chose Between RRSP and TFSA Using the Account Type Comparison Calculator

My situation

I'm in my early 30s, living in Ontario, with a salary of about $75,000. I had $10,000 saved and wanted to invest it for the long term. I'd read that RRSPs give you a tax break now and TFSAs are tax-free when you withdraw—but I had no idea which would actually leave me with more money in 20 years. I also had room in both accounts, so the real question was: where should this $10,000 go?

Using the calculator

I found TrackMoola's Account Type Comparison calculator and entered my details: province (Ontario), current income ($75,000), investment amount ($10,000), expected return (6%), time horizon (20 years), and my expected retirement income ($50,000). I also entered my available RRSP and TFSA room so the tool could model overflow into a non-registered account if needed.

What the numbers showed

The calculator showed me three columns: RRSP, TFSA, and Non-Registered. For my situation, the net after-tax benefit was highest with the RRSP. Here's why: my marginal tax rate today (around 30%) is higher than the rate I expect in retirement (around 20%). The tool showed my immediate tax savings from the RRSP contribution, the growth in each account, and the tax due on withdrawal. It also showed what happens if I reinvest my RRSP refund—something I hadn't considered. When I added that, RRSP came out ahead by a meaningful amount.

My decision

I put the $10,000 in my RRSP before the deadline, got the deduction, and set up a plan to reinvest my refund. I used the How-To Guide to double-check each field (e.g. retirement income, contribution room) so I was confident in the inputs. The calculator didn't give financial advice—it gave me a clear comparison so I could decide. If my income or retirement expectations change, I'll run the numbers again.

Try it yourself

Your situation is different from mine. Your province, income, retirement goals, and room in each account all change the result. Use the Account Type Comparison calculator with your own numbers, and read our step-by-step guide to understand every field. This tool is for educational purposes only; consult a tax or financial advisor for advice tailored to you.

This article is for educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional before making investment decisions.