Canadian Stock Profit Calculator: TFSA, RRSP, and Non-Registered Accounts

Canadian retail investors have three account types to choose from for stock investing: TFSA (Tax-Free Savings Account), RRSP (Registered Retirement Savings Plan), and a non-registered (taxable) account. Each has different tax implications, but all use the same underlying stock profit math. The trick is knowing which calculator output matters for your specific account type.

This guide walks through stock profit math for Canadian investors using free stock profit calculator, with notes on how each account type affects the after-tax outcome. Spoiler: the TFSA is almost always the right answer for stock trading.

The Three Canadian Account Types

TFSA (Tax-Free Savings Account): Contributions are made with after-tax dollars. All gains, dividends, and interest are tax-free forever. Withdrawals are tax-free. As of 2026, the cumulative contribution limit (since 2009) is around $95,000 for someone who has been eligible the entire time. The annual limit for 2026 is $7,000.

RRSP (Registered Retirement Savings Plan): Contributions are tax-deductible (you get the tax back as a refund). The money grows tax-free inside the account. Withdrawals in retirement are taxed as income. Contribution room is based on 18% of your previous year's income, up to about $32,000 for 2026.

Non-registered (taxable) account: No contribution limits. Capital gains are taxed at 50% inclusion rate (only half of your gains are added to taxable income). Dividends from Canadian companies get the dividend tax credit; foreign dividends are taxed as regular income.

Worked Example Across All Three

You buy 100 shares of Royal Bank of Canada (RY) at $135 and sell at $158 a year later through Questrade. Stock profit math is identical regardless of account type, but the after-tax result differs.

Plug into our stock profit calculator: Buy $135, Sell $158, Shares 100, fees $0 (Questrade is commission-free for ETFs and offers low-fee stock trading).

• Total cost: $13,500
• Total revenue: $15,800
• Pre-tax profit: $2,300
• Pre-tax return: +17.04%

Now apply tax based on account type, assuming you are a middle-income Canadian (35% marginal tax rate):

Account Type	Tax Treatment	After-Tax Profit
TFSA	0% — completely tax-free	$2,300
RRSP	0% now, taxed at withdrawal as income	$2,300 now (tax later)
Non-registered	50% inclusion × 35% marginal = 17.5% effective	$1,898

The TFSA wins by $402 on this single trade. Multiply that across 20-30 trades a year and the TFSA advantage can be $5,000-15,000 annually for an active trader. Over decades, the cumulative tax savings inside a TFSA can easily exceed $100,000.

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Why TFSA Beats Non-Registered for Stock Trading

The TFSA is structurally the best account for active or speculative trading because:

• Zero capital gains tax. Even big winners pay nothing in tax. A 10x trade inside a TFSA is fully yours. The same trade in a non-registered account loses 17-25% to tax depending on your bracket.
• Zero dividend tax. Both Canadian and foreign dividends are tax-free inside a TFSA (note: foreign dividends do still incur withholding tax at the source, which the TFSA cannot recover).
• Tax-free withdrawals at any time. Unlike the RRSP, you can take money out of a TFSA whenever you want without triggering a tax bill.
• Re-contribution rules. If you withdraw from a TFSA, the contribution room is restored the following calendar year. So you can effectively "reset" the wrapper.

The only catch: contribution limits. You can not put unlimited money into a TFSA — the annual room is around $7,000 in 2026 plus any unused room from prior years. For someone with $50,000 to invest, the TFSA holds the first chunk and a non-registered account holds the rest.

When to Use the RRSP Instead

The RRSP is better than the TFSA in two specific situations:

1. High-income earners getting a big tax refund. If you are in the 40-50% marginal bracket, contributing to an RRSP gives you a 40-50% tax refund this year. That refund can be reinvested. For someone in the 24% bracket, the RRSP refund is only 24%, which is much smaller.

2. US-listed dividend stocks. The IRS withholds 15-30% on US dividends paid to non-US accounts. The US-Canada tax treaty waives this withholding for RRSPs but NOT for TFSAs. So if you hold a lot of US dividend stocks (like SCHD or VYM), the RRSP is meaningfully more tax-efficient than the TFSA.

For most retail investors holding Canadian stocks, ETFs, or non-dividend US growth stocks, the TFSA is still the right answer. The RRSP shines for high earners and US dividend portfolios.

Canadian Broker Fees

Canada's brokerage market is more expensive than the US. Common 2026 fees:

Broker	Stock Commission	Notes
Wealthsimple Trade	$0	Fully commission-free, mobile-first
Questrade	$4.95-9.95/trade	Free ETF buys, paid sells
Interactive Brokers Canada	$1-4.95/trade	Best for high-volume traders
RBC Direct Investing	$9.95/trade	Major bank, slightly cheaper for active traders
TD Direct Investing	$9.99/trade	Major bank, similar to RBC
BMO InvestorLine	$9.95/trade	Major bank

For stock trades, Wealthsimple Trade is the cheapest (commission-free). For ETF buying, Questrade is excellent (free buys). For active traders doing 100+ trades per month, Interactive Brokers usually wins on cost.

Add the broker commission to the buy and sell commission fields in free stock profit calculator for accurate net P/L. For commission-free brokers like Wealthsimple, you can leave both fields at $0.

Frequently Asked Questions

What is the TFSA contribution limit for 2026?

The annual limit for 2026 is $7,000. Cumulative contribution room since 2009 (for someone who has been eligible the whole time) is approximately $95,000.

Can I trade options inside a TFSA?

Yes, but only some options strategies. You can buy calls and puts (going long), and you can write covered calls. You CANNOT write naked options or use strategies that require margin in a TFSA. Most brokers will block those automatically.

What happens if I day-trade in my TFSA?

CRA can deem your TFSA trading activity as "carrying on a business" and tax all the gains as income at full rates. This is a real risk for very active traders. CRA looks at trade frequency, holding period, knowledge level, and intent. Casual investing is fine; full-time day trading is risky.

Can I have multiple TFSAs?

Yes. You can have TFSAs at multiple brokers. The contribution limit is shared across all of them — you can not exceed the total annual room across all your TFSA accounts combined.