Compound Interest Calculator
Compare how your investments grow in a TFSA, RRSP, or non-registered account. See the impact of tax-free growth, tax-deferred growth, and annual tax drag on your long-term returns.
Investment Details
TFSA
Post-tax contributions, completely tax-free growth and withdrawals
- Final Balance
- $301,888
- Total Contributions
- $130,000
- Total Growth
- $171,888
- Tax Paid on Growth
- $0
- After-Tax Value
- $301,888
RRSP
Tax-deductible contributions, tax-deferred growth, taxed on withdrawal
- Final Balance
- $301,888
- Total Contributions
- $130,000
- Total Growth
- $171,888
- Tax Paid on Growth
- $0
- After-Tax Value
- $213,374
Non-Registered
No tax advantages — 50% capital gains inclusion, dividend gross-up and credit
- Final Balance
- $233,332
- Total Contributions
- $130,000
- Total Growth
- $103,332
- Tax Paid on Growth
- $42,865
- After-Tax Value
- $203,035
After-Tax Comparison
TFSA yields $98,853 more than the lowest after-tax option over this period.
How Canadian Account Types Affect Compound Growth
TFSA (Tax-Free Savings Account): Contributions are made with after-tax dollars, but all investment growth — interest, dividends, and capital gains — is completely tax-free. Withdrawals are tax-free and don't count as income, so they don't trigger OAS clawback or affect other benefits.
RRSP (Registered Retirement Savings Plan): Contributions are tax-deductible, reducing your taxable income in the year you contribute. Investments grow tax-deferred. However, all withdrawals are taxed as ordinary income, and they count toward the OAS clawback threshold.
Non-Registered Account: No contribution limits or tax sheltering. Investment income is taxed annually — interest at your full marginal rate, eligible dividends with a gross-up and credit, and capital gains at a 50% inclusion rate. This annual tax drag reduces the amount that compounds.
Related savings tools
TFSA Calculator
Track contribution room and project your TFSA growth over time.
RRSP Calculator
See your RRSP tax deduction, contribution room, and projected growth.
Capital Gains Tax Calculator
Calculate tax on investment gains with the 50% inclusion rate.
Retirement Projection
Year-by-year projection of CPP, OAS, RRIF, and TFSA in retirement.
Sources: CRA — TFSA, CRA — RRSPs, CRA — Capital Gains