Financial Tools
Mortgage vs RRSP vs TFSA Calculator
Wondering if extra money should go toward your mortgage, into your RRSP, or into a TFSA? This calculator helps Canadian families compare those three options side by side using simple assumptions.
- Estimate how much Mortgage Prepayments could save in interest.
- Project long-term growth from RRSP and TFSA investing.
- Include the impact of your estimated RRSP Tax Refunds.
Want to go deeper on one piece? Try the Mortgage Booster, RRSP Growth Starter, TFSA Growth Helper, or see everything together in your Family Finance Snapshot Dashboard.
1. Enter Your Numbers
* This comparison tool is for educational purposes only. It uses simplified assumptions and does not account for contribution limits, fees, market volatility, changing tax rules, or lender-specific mortgage terms. Results should not be considered personalized financial advice.
2. See The Comparison
A side-by-side snapshot of how this one extra monthly amount could work in three different places.
Option snapshots
Overall comparison (rough totals)
All amounts are before tax on eventual RRSP withdrawals and ignore TFSA/RRSP contribution room, fees, and lender-specific mortgage rules. This tool is for education only and doesn’t replace personalized advice.
Mortgage vs investing: how Canadian families think about the trade-off
When you have extra money each month, one of the most common questions is whether it’s better to put it toward your mortgage or invest it for the future. The answer isn’t universal — it depends on interest rates, time horizon, tax situation, and personal comfort with risk.
This calculator is designed to help Canadian families explore that decision calmly, using simple assumptions rather than sales-driven projections.
What paying down your mortgage really does
Extra mortgage payments provide a guaranteed return equal to your mortgage interest rate. Every dollar paid toward principal is a dollar you won’t pay interest on later.
For example, if your mortgage rate is 5%, prepaying is effectively like earning a risk-free 5% return. That certainty can be especially appealing during periods of market volatility or when cash flow stability matters.
How RRSP and TFSA investing compares
Investing extra money instead of prepaying your mortgage introduces uncertainty, but also the potential for higher long-term growth.
- RRSPs offer tax-deferred growth and potential tax refunds, which can meaningfully boost effective contributions if reinvested.
- TFSAs provide tax-free growth and flexibility, making them attractive for medium- to long-term goals.
Unlike mortgage prepayments, investment returns are not guaranteed and will vary year to year. This is why time horizon and risk tolerance matter so much.
Why this isn’t a simple math problem
While calculators can compare dollar outcomes, real-world decisions also include:
- How stable your income is
- Whether debt causes stress or feels manageable
- Upcoming life changes like children, moves, or career shifts
- Your comfort seeing investments fluctuate in value
Many families choose a blended approach — directing some extra cash toward mortgage prepayments while continuing to invest steadily through RRSPs or TFSAs.
How to use this comparison tool effectively
This calculator is most useful when you:
- Use conservative, realistic investment return assumptions
- Compare the same extra monthly amount across all options
- Focus on trends and ranges rather than a single “winner”
The goal isn’t to predict the future — it’s to understand the trade-offs so you can choose a strategy you’ll stick with comfortably.
Reminder: This tool provides educational projections only. Actual mortgage rules, investment returns, and tax outcomes will vary. For personalized advice, consider speaking with a qualified professional.