What counts as 'earned income' for RRSP purposes?

Mainly employment and self-employment income. Investment income, capital gains, and pension income generally don't count toward earned income for RRSP room purposes.

Does unused RRSP room expire?

No — unlike a TFSA's annual limit, unused RRSP contribution room carries forward indefinitely until you use it.

What happens if I over-contribute to my RRSP?

You're allowed a $2,000 lifetime over-contribution buffer with no penalty. Beyond that, the CRA charges a 1%-per-month tax on the excess amount until it's withdrawn or absorbed by new contribution room.

Is the tax refund the same as free money?

No — it's a tax deferral, not a tax elimination. You get the deduction now, but withdrawals in retirement (or earlier) are taxed as regular income at whatever rate applies then.

Why would I NOT max out my RRSP in a given year?

If your current marginal tax rate is low, the deduction is worth less now than it would be in a higher-earning year — many advisors suggest carrying that room forward instead.

Does an employer pension plan affect my RRSP room?

Yes — if you belong to a registered pension plan, your 'pension adjustment' reduces your RRSP contribution room for the following year.

Can I use my RRSP for something other than retirement?

Yes, within limits — the Home Buyers' Plan and Lifelong Learning Plan let you withdraw RRSP funds tax-free for a first home purchase or education, provided you repay on a set schedule. This calculator doesn't model either.

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Finance

Canada RRSP Calculator

Contribution room, tax refund, and growth projection for your RRSP.

🔒 Runs entirely in your browser — nothing here is ever uploaded

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Last reviewed 2026-08-30

About the Canada RRSP Calculator

Estimates your RRSP contribution room from the 18%-of-earned-income rule (capped at the annual dollar limit) plus any carried-forward unused room, your tax refund from contributing, and a compound-growth projection to retirement.

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How to use it

Enter last year's earned income and any unused contribution room carried forward.
Enter the contribution you plan to make this year and your marginal tax rate.
Enter your current RRSP balance and years until retirement.
Enter your expected annual investment growth rate.
Read your estimated tax refund, room used, and projected balance in the result panel.

Formula

Contribution room from income = min(18% × last year's earned income, the year's RRSP dollar limit). Total room = that + any carried-forward unused room from prior years. Contribution applied = min(your planned contribution, total room). Tax refund = contribution applied × your marginal tax rate. Projected balance = current balance × (1 + growth)^years + this contribution × [((1 + growth)^years − 1) ÷ growth], assuming the same contribution repeats annually.

Worked example

A $70,000 prior-year income (room = 18% × $70,000 = $12,600), contributing $6,000 this year at a 30% marginal tax rate, starting from a $20,000 balance, over 25 years at 6% growth: an estimated $1,800 tax refund this year and a projected RRSP balance of roughly $415,000 at retirement.

Key 2026 RRSP figures

Key 2026 RRSP figures
Item	Amount / rate
Contribution room from income	18% of prior year's earned income
2026 RRSP dollar limit	$33,810 CAD
Unused room carry-forward	Indefinite — no expiry
Lifetime over-contribution buffer	$2,000
Over-contribution penalty	1% per month on the excess

Interpreting your result

Uses the 2026 RRSP dollar contribution limit ($33,810 CAD). Unused contribution room carries forward indefinitely — there's no 'use it or lose it' deadline the way there is with a TFSA's annual limit reset. Over-contributing by more than a $2,000 lifetime grace buffer can trigger a CRA penalty tax of 1% per month on the excess. Doesn't model the Home Buyers' Plan, Lifelong Learning Plan, pension adjustments from an employer plan, or spousal RRSPs. Not financial or tax advice.

Recommendations

• Unused RRSP room never expires — if you can't max out your contribution room in a low-income year, it's usually better to carry it forward and use it in a higher-income year, when the tax refund is worth more.
• A pension adjustment from a workplace plan reduces your RRSP room for the following year — check your T4 slip's Box 52 if you're in an employer plan.
• The tax refund from an RRSP contribution isn't free money — it's a deferral. Withdrawals in retirement are taxed as regular income, which is the whole point if you expect a lower tax rate then than now.

Frequently asked questions

18% of your earned income from the previous year, up to that year's dollar limit ($33,810 for 2026), plus any unused room carried forward from all prior years combined.