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RRSP Calculator

Estimate your RRSP contribution room and the tax refund a contribution generates for the 2025 tax year.

Inputs

CAD
CAD
2025 contribution room is 18% of prior-year earned income, up to $32,490 (less any pension adjustment), plus unused room carried forward. The tax refund equals your contribution times your marginal tax rate, so contributing in a high-income year is most effective. This tool assumes the contribution does not exceed your available room.

Estimated Tax Refund

From your contribution
$0

How RRSPs work

A Registered Retirement Savings Plan (RRSP) lets you deduct contributions from your taxable income, so you get a refund at your marginal tax rate and your investments grow tax-deferred until withdrawal. Your annual room is 18% of the previous year's earned income, capped at $32,490 for 2025, plus any unused room carried forward from past years.

Because the refund depends on your marginal rate, an RRSP is most valuable when you contribute in higher-income years and withdraw in retirement when your income (and rate) is typically lower. Contributions made in the first 60 days of the year can be applied to the previous tax year. The Home Buyers' Plan and Lifelong Learning Plan allow tax-free withdrawals for specific purposes if repaid.

FAQ

How much can I contribute?
18% of last year's earned income up to $32,490 (2025), reduced by any pension adjustment, plus unused room carried forward. Check your CRA Notice of Assessment for your exact limit.
How is the refund calculated?
Your contribution reduces taxable income, so the refund is roughly the contribution times your combined federal-plus-provincial marginal rate.
What if I over-contribute?
There is a $2,000 lifetime buffer; beyond that, excess contributions are penalised at 1% per month until withdrawn.
RRSP or TFSA?
RRSP suits higher earners expecting lower retirement income; TFSA withdrawals are tax-free and don't affect benefits. Many use both.