RRSP Refund Reinvestment Calculator
The RRSP refund loop:
compound both accounts.
Contribute to your RRSP. Get the tax refund. Invest the refund in your TFSA. This tool shows what the combined strategy produces versus using only one account.
Educational estimates only. Not tax or financial advice. Consult a qualified tax professional before making RRSP or TFSA decisions.
Educational tool only. Marginal tax rates are approximations. RRSP withdrawals are taxed as income. TFSA withdrawals are tax-free. The combined strategy is powerful but depends on your marginal rate at contribution versus withdrawal, which only a tax professional can model accurately for your situation.
Your numbers
$
Check Line 26500 on your NOA for your available room.
Your combined federal and provincial rate. The NOA Decoder can estimate yours.
How long both accounts will compound before withdrawals begin.
Applied equally to both the RRSP and TFSA. 7% is a conservative long-term assumption.
Your estimated marginal rate in retirement. Often lower than your current rate.
Monthly contributions compound slightly more than a single annual payment.
RRSP + TFSA Loop Analysis • Educational Estimate
The loop adds -- vs RRSP alone
--
Annual refund to TFSA
RRSP alone (after tax)
--
RRSP balance after estimated withdrawal tax. Growth is sheltered but withdrawal is taxed as income.
TFSA refund loop alone
--
Just the annual tax refund, invested in TFSA and compounded. Entirely tax-free at withdrawal.
Combined: RRSP + TFSA loop
--
The full loop: RRSP after-tax proceeds plus the tax-free TFSA balance.
How the refund loop works with your numbers
Combined portfolio growth (5-year intervals)
RRSP withdrawals are taxable at your estimated retirement rate. TFSA withdrawals are tax-free. These estimates do not account for RRIF minimums, OAS clawback, income-tested benefits, or changes in tax rates over time. Always consult a qualified tax professional.
Open both accounts. Start the loop.
Wealthsimple lets you open a TFSA and RRSP in the same place. Commission-free XEQT. Get $25 free on your first deposit.
For educational and informational purposes only. Not tax, financial, or investment advice. RRSP withdrawals are taxable income. TFSA withdrawals are tax-free. Results depend on your actual marginal tax rates, which vary by province, income level, and retirement income sources. This tool uses simplified assumptions and does not account for RRIF minimums, OAS clawback, CPP, income-tested government benefits, or changes in tax legislation. Always consult a registered tax professional or financial planner. XEQT is subject to market risk. This page contains an affiliate link to Wealthsimple.