Financial Tools
RRSP vs. Mortgage Calculator
Should you put extra money toward your RRSP or your mortgage? Compare both strategies to find the best approach for your situation.
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Recommended Strategy
Contribute to RRSP
RRSP produces $72,943 more in net benefit
Option A: RRSP
$86,174
Contributions: $50,000
Tax refunds reinvested: $15,250
Marginal rate: 30.5%
Option B: Mortgage
$13,232
Interest saved over 10 years
Mortgage paid off 5y 0m sooner
Annual Tax Refund
$1,525
Total Interest Saved
$13,232
Time Saved on Mortgage
5y 0m
Benefit Comparison
RRSP Value$86,174
Mortgage Interest Saved$13,232
RRSP Benefit
Mortgage Benefit
RRSP Growth vs. Mortgage Interest Saved Over Time
Yr 1: RRSP $6,851 | Saved $0
Yr 2: RRSP $14,045 | Saved $256
Yr 3: RRSP $21,599 | Saved $781
Yr 4: RRSP $29,530 | Saved $1,588
Yr 5: RRSP $37,857 | Saved $2,692
Yr 6: RRSP $46,602 | Saved $4,109
Yr 7: RRSP $55,783 | Saved $5,854
Yr 8: RRSP $65,423 | Saved $7,944
Yr 9: RRSP $75,546 | Saved $10,397
Yr 10: RRSP $86,174 | Saved $13,232
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RRSP Balance
Cumulative Interest Saved
This calculator is for illustrative purposes only and does not constitute financial advice. Tax brackets are based on 2026 rates and may change. Actual investment returns and mortgage rates will vary. The RRSP calculation assumes tax refunds are fully reinvested each year. Mortgage interest is compounded semi-annually as is standard in Canada, but calculated monthly for simplicity in this tool. This comparison does not account for taxes payable on RRSP withdrawals in retirement. Please consult with a qualified financial advisor before making financial decisions.