RRSP Calculator
Calculate your RRSP contribution room, tax savings, and projected retirement value — Canada's primary tax-sheltered retirement account.
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How to use this calculator
- 1
RRSP room is 18% of your prior year earned income, up to $33,810 for 2026. Unused room carries forward indefinitely.
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Every dollar contributed saves tax at your marginal rate — higher earners save more per dollar contributed.
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Contributions must be made by March 1 (60 days after year-end) to claim on the prior year's return.
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You can over-contribute up to $2,000 lifetime without penalty — anything beyond that is taxed at 1%/month.
Frequently asked questions
What is the RRSP contribution limit for 2026?
Your new room for 2026 is 18% of your previous year’s earned income, up to a maximum of $33,810, plus any unused room carried forward and minus any pension adjustment. You would need about $187,800 of earned income in the previous year to reach the maximum. The limits were $31,560 for 2024 and $32,490 for 2025.
What is the RRSP deadline?
You can contribute for a tax year until 60 days after it ends — March 1 in most years, February 29 in leap years. A contribution made in that window can be deducted on the earlier year’s return, and you may also choose to carry the deduction forward to a later year with higher income.
How much tax will an RRSP contribution save me?
The saving equals the contribution multiplied by your marginal tax rate. In Ontario, someone earning $80,000 has a combined marginal rate of about 31.5%, so a $10,000 contribution saves roughly $3,148. At $150,000 the marginal rate is about 43%, so $20,000 saves roughly $8,632. The calculator uses approximate combined federal and provincial rates for the province you select.
What happens if I over-contribute to my RRSP?
You can exceed your room by up to $2,000 for life with no penalty. Beyond that, the CRA charges 1% per month on the excess until you withdraw it or new room arises. The calculator flags any amount above room plus the $2,000 buffer as a taxable over-contribution.
When do I have to convert my RRSP?
By December 31 of the year you turn 71 you must convert it to a RRIF, buy an annuity, or cash it out. A RRIF requires a minimum withdrawal every year, starting at 5.28% of the balance at age 71 and rising with age. You can no longer contribute to the RRSP after the year you turn 71, but you can keep contributing to a spouse’s plan if they are younger.
How does the Home Buyers’ Plan work?
First-time buyers can withdraw up to $60,000 from their RRSP to buy or build a qualifying home, tax-free, and a couple can withdraw up to $120,000 between them. Repayment is spread over 15 years with the first instalment due in the fifth year after the withdrawal. Any missed instalment is added to your income for that year.
Are RRSP withdrawals taxed?
Yes. A withdrawal is added to your income for the year and taxed at your marginal rate. The financial institution also holds back withholding tax at the time, outside Quebec 10% on amounts up to $5,000, 20% from $5,001 to $15,000 and 30% above $15,000. That is a prepayment, and the final tax depends on your total income. Unlike a TFSA, withdrawn RRSP room is not restored.
Should I put money in an RRSP or a TFSA?
If your marginal tax rate now is higher than you expect it to be in retirement, the RRSP deduction usually wins, particularly in the higher tax brackets. At lower incomes, or if you expect higher retirement income, the TFSA often comes out ahead. Many people contribute to the RRSP and invest the tax refund in a TFSA.
RRSP calculator — 2026 contribution room, tax savings and retirement value
RRSP contribution limits and how room is built
RRSP room is 18% of last year’s earned income up to a yearly dollar cap, plus unused room from earlier years, less any pension adjustment from a workplace pension. Earned income includes employment income, self-employment net income and rental income, but not investment income or most benefits. The cap is indexed each year.
| Tax year | Dollar limit | Earned income needed to reach it |
|---|---|---|
| 2024 | $31,560 | $175,333 |
| 2025 | $32,490 | $180,500 |
| 2026 | $33,810 | $187,833 |
Worked example: $80,000 income, $10,000 contribution, Ontario
At $80,000 of income your new room is 18% × $80,000 = $14,400, so a $10,000 contribution fits. In Ontario the combined marginal rate at that income is about 31.5%, which makes the tax saving $10,000 × 31.5% = $3,148. If you already hold $50,000 and add $10,000, the $60,000 would grow to about $257,512 in 25 years at 6%. Taking only the 6% return each year would pay roughly $15,451 a year while leaving the balance untouched. These are taxable at withdrawal and are projections at a constant return, not predictions.
How the tax saving changes with income
The deduction is worth more at higher incomes because it removes income taxed at your top marginal rate. The table compares two Ontario earners using the same calculator.
| Annual income | New RRSP room | Contribution | Marginal rate | Tax saving |
|---|---|---|---|---|
| $80,000 | $14,400 | $10,000 | 31.5% | $3,148 |
| $150,000 | $27,000 | $20,000 | 43.2% | $8,632 |
Taking money out: withholding tax, the Home Buyers’ Plan and the Lifelong Learning Plan
Ordinary withdrawals are taxable income and lose their contribution room for good. Two programs let you borrow from your RRSP without tax: the Home Buyers’ Plan (up to $60,000 per person for a first home, repaid over 15 years) and the Lifelong Learning Plan (up to $10,000 a year and $20,000 in total for full-time study, repaid over 10 years). If you miss a scheduled repayment, that amount is added to your taxable income for the year.
Limits of this estimate
The marginal rates are approximate combined federal and provincial rates for six provinces, and room is estimated from the income you enter rather than from your CRA notice of assessment. Your own room appears on your notice of assessment and in CRA My Account. Employer pension adjustments, spousal contributions and carry-forward deductions are not modelled, so use the result for planning and confirm exact figures before contributing near your limit.
Learn more from an authoritative source:
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →