TFSA Growth Calculator
Project how your Tax-Free Savings Account grows with regular contributions — every dollar of growth stays completely tax-free.
2026 annual TFSA limit is $7,000.
Your Projected TFSA Balance
Balance After 20 Years (Tax-Free)
$305,020
What Is the TFSA Growth Calculator?
A Tax-Free Savings Account grows completely free of tax — no tax on investment growth while it's in the account, and no tax when you withdraw it, regardless of how large the balance becomes. This calculator projects how your TFSA balance grows over time with regular annual contributions, compounding at your expected rate of return, so you can see the real long-term effect of consistent contributions.
This calculator focuses purely on projecting growth. If you're deciding whether a TFSA or an RRSP is the better place to put your money in the first place, the RRSP vs TFSA Calculator addresses that specific tax-rate comparison — this one assumes you've already chosen a TFSA and want to see where it could take you.
TFSA Growth Calculator Formula
Each Year: Balance = (Balance + Annual Contribution) × (1 + Return Rate)
How Is the TFSA Growth Calculator Calculated?
This calculator simulates your TFSA balance year by year: each year's contribution is added to the balance, then the full balance grows at your expected annual return rate. This compounding effect means growth in early years continues compounding in every subsequent year, which is why TFSA balances often grow much faster in later years than in the first few.
Because none of this growth is ever taxed — unlike a regular investment account, where capital gains, dividends, and interest are taxed annually or on sale — the full return shown here is what you'd actually keep, with no tax deduction to account for at withdrawal.
TFSA Growth Calculator Example
Starting with $10,000, contributing $7,000 per year for 20 years at a 6% annual return: the account grows to about $305,020 — of which $150,000 was contributed and about $155,020 is tax-free growth.
Starting from $0, contributing the full $7,000 annual limit for 30 years at 7% return: the account reaches about $707,511, with $497,511 of that being tax-free growth — more than double the total amount actually contributed.
Starting with $25,000, contributing $7,000 per year for 15 years at a more conservative 5% return: the balance reaches about $210,576, with about $80,576 in tax-free growth.
How to Use the TFSA Growth Calculator
Step 1
Enter your current TFSA balance.
Step 2
Enter your planned annual contribution.
Step 3
Enter the number of years you plan to keep contributing and growing the account.
Step 4
Enter your expected annual return, and review the projected final balance.
Benefits
- Shows the real long-term compounding effect of consistent TFSA contributions.
- Clearly separates total contributions from tax-free growth, since both matter for understanding the projection.
- Uses the current 2026 TFSA annual contribution limit for context.
- Free, instant, and runs entirely in your browser.
Common TFSA Growth Calculator Scenarios
Scenario 1
Projecting how a TFSA could grow toward a specific long-term savings goal.
Scenario 2
Comparing how different contribution amounts or timeframes change your projected balance.
Scenario 3
Understanding how much of a future balance would come from contributions versus tax-free growth.
Scenario 4
Setting realistic expectations for TFSA growth before committing to a specific contribution plan.
Scenario 5
Illustrating the power of tax-free compounding to someone deciding whether to prioritize TFSA contributions.
Understanding Your Result
The projected balance shown is an estimate based on a constant assumed rate of return — real investment returns vary year to year and aren't guaranteed, so treat this as a planning estimate rather than a promised outcome. The tax-free growth portion is the genuine advantage of a TFSA over a comparable taxable investment account, where a portion of that growth would be lost to tax each year or on withdrawal.
Because TFSA withdrawals don't count as taxable income, they also don't affect income-tested benefits or push you into a higher tax bracket — an additional practical advantage beyond the raw dollar figures shown here.
Tips
- The 2026 TFSA annual limit is $7,000, but your actual available room may be higher if you have unused room from previous years since the account's 2009 introduction — check your CRA My Account for your specific limit.
- Consistent contributions early tend to benefit the most from compounding, since that growth has more years to compound further — starting even a few years earlier can meaningfully change a long-term projection.
- Unlike an RRSP, withdrawing from a TFSA doesn't permanently lose that contribution room — withdrawn amounts are added back to your available room starting the following calendar year.
- A more conservative expected return assumption gives a more cautious, realistic projection — consider running this calculator with a few different return assumptions to see a plausible range of outcomes.
- TFSA growth can come from any eligible investment type (stocks, bonds, GICs, mutual funds) — the tax-free treatment applies regardless of what you hold inside the account.
Common Mistakes
- Assuming a fixed rate of return will hold exactly every year, when real markets fluctuate significantly year to year even if the long-term average is similar.
- Not accounting for unused TFSA contribution room from previous years, which can allow contributing more than the current year's limit alone.
- Confusing TFSA contribution room with RRSP contribution room, which are calculated completely differently.
- Forgetting that withdrawing from a TFSA doesn't create a tax event, unlike an RRSP withdrawal.
- Treating a single growth projection as a guarantee rather than an estimate based on assumed, uncertain future returns.
Frequently Asked Questions
Is TFSA growth really completely tax-free?
Yes — unlike a regular investment account, capital gains, dividends, and interest earned inside a TFSA are never taxed, and withdrawals (of both contributions and growth) are also completely tax-free.
What is the 2026 TFSA annual contribution limit?
$7,000 for the year. If you've never contributed and have been eligible (18 or older, Canadian resident) since the TFSA's 2009 introduction, your total accumulated room by 2026 would be $109,000.
Does withdrawing from my TFSA reduce my future contribution room?
No — withdrawn amounts are added back to your available contribution room, but only starting the following calendar year, not immediately.
What happens if I contribute more than my available room?
The CRA charges a 1% per month penalty tax on the excess amount for as long as it remains in the account above your available room — it's important to track your actual contribution room, not just the current year's limit.
What's a realistic expected annual return to use in this calculator?
This depends entirely on what you're invested in — a savings account or GIC-based TFSA might earn 2-4%, while a diversified stock portfolio has historically averaged higher over long periods, though with much more year-to-year variability. Use a rate that reflects your actual investment choices and risk tolerance.
Should I max out my TFSA before contributing to other accounts?
This depends on your specific goals and tax situation — the RRSP vs TFSA Calculator addresses the specific comparison between the two account types based on your tax rate now versus in the future.
Does this calculator account for investment fees?
No — it projects growth using your entered return rate as a net figure. If you want to account for fees separately, use a return assumption that already reflects your expected fees.
Can I use a TFSA for short-term savings, not just long-term investing?
Yes — TFSAs work well for both short-term and long-term goals since there's no penalty for withdrawing early (unlike an RRSP), though this calculator is designed for illustrating longer-term compounding growth specifically.
Does my TFSA contribution room grow if I don't use it?
Yes — unused contribution room carries forward indefinitely and accumulates every year you're eligible, even if you don't contribute anything in a given year.
Is this calculator accurate for a TFSA held at any financial institution?
Yes — the tax-free treatment and contribution room rules are set by the CRA and apply the same way regardless of which bank, credit union, or investment firm holds your TFSA.
Can I share this growth projection as an image?
Yes — tap Share and, on supported devices, your result is shared as a branded image card, not just a text link.
References
Important Information
This calculator provides estimates for informational purposes only and is not financial or investment advice. Uses the confirmed 2026 CRA TFSA annual contribution limit for context; investment growth is projected using a constant assumed rate of return, which does not reflect real market variability. Does not model investment fees or check your actual available contribution room. Confirm your specific situation with a qualified financial advisor or the CRA.
Last updated: August 2026