Investment Calculators · Canada
TFSA calculator: interest, growth & room.
The 2026 TFSA limit is $7,000. Someone eligible every year since 2009 has $109,000 of total room. Project the tax-free growth below.
How is TFSA interest calculated? Each year: new balance = old balance × (1 + rate) + that year’s contribution. This calculator adds the contribution at year end and shows interest for every year. Enter a starting balance, yearly contribution, interest rate or return and time horizon to project your TFSA value and the tax you avoid versus a taxable account. To work out how much room you have, use the TFSA contribution room calculator.
To find your maximum TFSA contribution, use the TFSA contribution limit calculator (room since 2009). Saving for a first home instead? That is the FHSA calculator; RRSP room is the RRSP contribution room calculator.
Source: CRA — Calculate your TFSA contribution room (2026 dollar limit); CRA — Tax-Free Savings Account (TFSA) · As of
Cite this page: TNAADO Tools, “TFSA Contribution Room Calculator 2026”, https://tools.tnaado.ca/calculators/investment/tfsa/
TFSA annual limits, 2009 to 2026
| Years | Annual limit | Cumulative total |
|---|---|---|
| 2009 to 2012 | $5,000 | $20,000 |
| 2013 and 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 to 2018 | $5,500 | $57,500 |
| 2019 to 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 to 2026 | $7,000 | $109,000 |
Source: CRA, Before you contribute to a TFSA and Calculate your TFSA contribution room. Cumulative column is our running total of the CRA limits. It assumes you were 18 or older and a Canadian resident for every year.
Worked example
Start with $20,000, add $7,000 a year (the 2026 limit) for 20 years at a 6% return, compounded yearly. You contribute $160,000 in total and the account grows to about $321,642. That leaves roughly $161,642 of growth, none of it taxed. At the 25% average rate this calculator assumes, that is about $40,410 of tax avoided. The calculator below is pre-filled with these numbers. Change them to see your own. Contributions and returns are assumptions, not guarantees. To see how compounding works, try the compound interest calculator.
Inputs
Projected TFSA value
Fill the form and press Calculate.
About the TFSA
Contributions are not tax-deductible, but every dollar of growth and every withdrawal is completely tax-free. Withdrawals create new contribution room the following calendar year. We assume a 25% average tax rate when estimating taxes you would have paid on the same growth in a non-registered account.
TNAADO Inc. · Toronto
Room is personal, and withdrawals come back late
TFSA room is not one national figure. It accumulates from the year you turned 18 or from 2009, whichever is later, so two people of different ages have different lifetime room and the familiar "cumulative since 2009" number applies only to someone who was already 18 in 2009. Contributions are not deductible; growth and withdrawals are entirely tax-free, and withdrawals do not count as income for income-tested benefits.
The mistake people make. Re-contributing a withdrawal in the same calendar year. Withdrawn amounts are restored to your room on January 1 of the following year, not immediately, and putting the money back before then is an over-contribution taxed at 1% per month on the excess. The second trap is trusting the figure in CRA My Account: it is updated once a year in the spring from the previous year’s reporting and is routinely out of date.
Frequently asked questions
What is the TFSA limit for 2026?
The TFSA dollar limit for 2026 is $7,000, added to your room on January 1, 2026. If you have been eligible every year since 2009 and never contributed, your total room is $109,000. Your room is the current year's limit plus unused room from earlier years plus last year's withdrawals, minus contributions already made this year.
How is TFSA interest calculated?
Interest for a year is the opening balance times the annual rate. This calculator then adds your contribution at the end of the year, so the next year earns interest on both. The year-by-year table in the results shows each step. Actual banks may compound daily or monthly, which gives a slightly different figure.
Is interest earned in a TFSA taxable?
No. Interest, dividends and capital gains earned inside a TFSA are not taxed in Canada, and withdrawals are not taxed. Foreign countries may still withhold tax on foreign dividends. Source: CRA, Tax-Free Savings Account.
Is a TFSA the same as an FHSA?
No. The FHSA is for a first home and has its own limits. See the FHSA calculator.
If I withdraw from my TFSA, when does the contribution room come back?
On January 1 of the following calendar year, not immediately. Withdraw $10,000 in March and that $10,000 of room returns the next January, on top of the new annual limit.
Re-contributing the same amount later in the same year is the most common TFSA mistake and is treated as an over-contribution, with a penalty, even though you are only putting back money that was yours.
What is the penalty for over-contributing to a TFSA?
1% per month on the highest excess amount in each month that the over-contribution remains in the account. It continues to accrue until the excess is withdrawn, so the fix is to remove it promptly rather than wait for the CRA to write to you.
Because the penalty is monthly rather than annual, a modest over-contribution left for a year costs about 12% of the excess. CRA says to use your own records and your issuers' statements, because your CRA account is only updated once a year in the spring. Source: CRA, If you over-contribute to a TFSA.
Should I contribute to a TFSA or an RRSP?
Compare your marginal tax rate now against the rate you expect when you withdraw. If you are in a high bracket today and expect a lower one in retirement, the RRSP deduction is worth more. If you are in a low bracket today (early career, a low-income year, or a student) the TFSA is usually better.
The TFSA also wins on flexibility, since withdrawals are tax-free, unrestricted, and do not affect income-tested benefits such as OAS or the Canada Child Benefit. That makes it the better home for an emergency fund or any goal short of retirement.
Disclaimer
Educational only. TFSA contribution limits change annually - always verify your personal contribution room with CRA before depositing.