Investment Calculators · Canada
TFSA growth.
Project tax-free growth in your Canadian Tax-Free Savings Account. Every dollar of interest, dividend, and capital gain inside a TFSA is yours to keep.
A TFSA growth calculator. Enter your starting balance, ongoing contributions, expected rate of return and time horizon, and it projects the account value along with the tax you avoid by holding the investment inside a TFSA instead of a taxable account.
The rule it reflects: TFSA contributions are not deductible, but all growth and every withdrawal are completely tax-free, and withdrawals are never added to your income.
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 30% marginal rate when estimating taxes you would have paid on the same growth in a non-registered account.
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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 Withdrawn amounts are restored to your room on January 1 of the following year, not immediately, and putting the money back before then is an over-contribution taxed at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figure in CRA My Account: it is updated once a year in the spring from the previous year’s reporting and is routinely out of date.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
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. Your official room is shown in CRA My Account, though it can lag recent transactions.
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.