Open a Wealthsimple account· to invest your RRSP contributions — no account fees, commission-free stocks and ETFs.
This is a constant-return projection tool. It shows how your RRSP balance grows year-by-year if your investments earn the same percentage each year. It is designed for rough planning — getting a sense of order of magnitude — not for precise retirement income modelling.
Contributions are assumed at the start of each year.
Return rate is fixed — there is no modelling of year-to-year market variance or sequence-of-returns risk.
No fees are deducted — subtract your fund's MER from the return rate to adjust.
Tax on RRSP withdrawal is not modelled. Withdrawals are fully taxable as income.
RRIF conversion rules and minimum withdrawals are not modelled.
Contribution room limits are not enforced — ensure your annual contribution is within your room.
A 35-year-old with $50,000 already in their RRSP, contributing $6,000 per year at a 6% annual return, projecting to age 65 (30 years):
Year 1: ($50,000 + $6,000) × 1.06 = $59,360
Year 2: ($59,360 + $6,000) × 1.06 = $69,322
Projected balance at 65: approximately $790,000 (nominal)
In today's dollars (2% inflation over 30 years): approximately $436,000
Total contributed: $180,000 — investment growth accounts for the rest
The power of compound growth is clear: over 30 years at 6%, more than half the final balance comes from investment returns rather than contributions. Starting earlier — even with a smaller balance — substantially increases the outcome.
A constant 6% return is a planning assumption, not a prediction. Actual equity markets experience significant year-to-year swings. In a real portfolio, a few bad years close to retirement can reduce the final balance substantially compared to this projection — this is called sequence-of-returns risk.
For planning purposes, the projection is still useful: it gives you a reasonable target, helps you understand the impact of increasing contributions, and shows how much of the final balance comes from investment growth versus your own savings.
As you approach retirement, most financial planners recommend shifting toward more conservative investments (more bonds, GICs, or balanced funds) to reduce sequence-of-returns risk — even if the expected return is lower.
6% is a widely used planning assumption for a balanced (roughly 50% stocks / 50% bonds) Canadian portfolio. FP Canada's 2024 Projection Assumption Guidelines recommend 6.1% for a balanced portfolio as a nominal expected return. Equity-heavy portfolios may average higher historically, but with more volatility. Conservative or GIC-based portfolios will average lower. Adjust the return rate in the calculator to reflect your actual investment mix.
The calculator uses a nominal return rate (before inflation). The 'in today's dollars' output applies your chosen inflation rate to show purchasing power in today's terms. If you want to think purely in real terms, you can enter a real return rate directly (e.g. 4% instead of 6% if you assume 2% inflation) and set inflation to 0%.
Subtract your fund's Management Expense Ratio (MER) from the expected return rate. For example, if you expect a 6% gross return but your mutual fund charges a 1.5% MER, enter 4.5% as your return rate. ETFs typically have MERs of 0.05%–0.25%, while actively managed mutual funds often charge 1.5%–2.5%.
RRSP withdrawals are fully taxable as income in the year they are taken. This calculator does not model taxes on withdrawal — it shows the pre-tax accumulated balance. By age 71, your RRSP must be converted to a RRIF or used to purchase an annuity, and minimum annual withdrawals apply. The tax efficiency of an RRSP comes from contributing at a high marginal rate and withdrawing at a lower rate in retirement.
Just change the retirement age input. The calculator projects over any number of years. Note that if you convert your RRSP to a RRIF before age 71, minimum annual withdrawals apply from the year following conversion. The calculator does not model RRIF withdrawals.
This is one of the most common personal finance questions in Canada. In general: if your mortgage interest rate is lower than your expected after-tax investment return, RRSP contributions tend to win mathematically — especially if you invest the tax refund. If your mortgage rate is high, paying it down may be the better guaranteed return. Many Canadians split contributions between both. Consult a financial planner for advice specific to your situation.
Wondering how much of a refund your RRSP contribution will generate this year? Use the RRSP Tax Refund Calculator to estimate your tax savings based on your income and province.
Methodology — Projection uses start-of-year contributions: balance = (balance + contribution) × (1 + returnRate). The 6% default reflects FP Canada's 2024 Projection Assumption Guidelines for a balanced portfolio. The 2% inflation default reflects the Bank of Canada's target. No MER or fees are deducted by default.
