Investment · TFSA

TFSA lump sum vs monthly.

Same money, different timing: one deposit in January or twelve equal deposits through the year.

With a steady return, money in earlier grows more. At a 6% yearly return, $7,000 deposited on 1 January ends the year about $195 ahead of the same $7,000 deposited as twelve monthly amounts ($7,420 vs $7,225).

Illustration, not a forecastYou set the returnUp to 60 years

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The 2026 limit is $7,000.
Your assumption. Returns are not guaranteed and can be negative.

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How the comparison works

The January lump sum earns the return for the full year. Each monthly deposit is made at the start of its month and earns for the months left. The return is converted to an equal monthly rate so both cases use the same yearly return. Over several years the gap repeats each year because the account is also bigger. If returns are negative, spreading deposits out does better. Which is right for you depends on cash flow: most people can only deposit as they are paid.

Example: $7,000 a year at 6% for one year.
MethodBalance after 1 year
1 January lump sum$7,420
Twelve monthly deposits$7,225

2027: as of 18 October 2026 the CRA limits table lists no 2027 TFSA dollar limit (the cell is blank, although the 2027 RRSP limit is shown). This page uses 2026 figures and will be updated once the CRA publishes the 2027 limit.

If you are paid every two weeks use the per paycheque calculator. For long-run growth see TFSA growth.

Frequently asked questions

Is it better to put money in my TFSA all at once or monthly?

If returns are positive, putting it in earlier gives more time to grow, so a January lump sum comes out ahead. If returns are negative the monthly route does better. It also depends on whether you have the cash in January.

Does it matter when in the year I contribute for room?

The 2026 limit is added on 1 January, so you can contribute any time up to 31 December. Contributions reduce your room immediately.

How big is the difference?

At 6% on $7,000 it is about $195 after one year. It is an illustration with a constant return.

What is the TFSA limit for 2027?

Not announced as of 18 October 2026. The CRA limits table has no 2027 TFSA figure yet.

Sources

Checked

Runs entirely in your browser. Nothing you type is sent or stored. This is an independent guide, not the CRA; confirm your own room in your CRA account or your institution's records.

Not advice

Illustration with a constant return you choose. Real returns vary and are not guaranteed. Not financial or tax advice.

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