Monthly payment
$2,101
Mortgage + investing
Long-term equity avg ~8%
Goes to investing
$500/mo
Marginal rate
43.41%
Retirement rate
29.65%
You invest $500/mo. Your tax refund (43.41%) adds $384/mo. Reinvesting that refund generates another refund, and so on.
Effective RRSP contribution
$884/mo
$312,450
Estimated after-tax wealth after 20 years
Pure RRSP
#1$312,450
Pay mortgage normally. Invest extra in RRSP from day one with refund reinvestment loop.
Pure TFSA
#2$278,900
Pay mortgage normally. Invest extra in TFSA from day one. Tax-free growth.
Mortgage then RRSP
#3$245,100
Accelerate mortgage payoff. Then invest freed cash in RRSP.
Mortgage then TFSA
#4$231,800
Accelerate mortgage payoff. Then invest freed cash in TFSA.
[ Interactive Line Chart ]
Updates in real-time as you adjust sliders on the left
Why Pure RRSP wins for you
At your income level ($100K), your marginal tax rate is 43.41%. Every $1,000 you contribute to an RRSP effectively costs you only $566 after the tax refund. With an 8% return exceeding your 4% mortgage rate, investing from day one beats accelerating your mortgage.
Year-by-Year Breakdown
[ expand ]How We Calculated This
[ expand ]This tool is for educational purposes only. Not financial advice. Consult a licensed financial advisor. 2025 Canadian tax brackets.