Canada FHSA Calculator: First Home Savings Account Growth
Estimate what a Canadian FHSA (First Home Savings Account) grows to from regular contributions — the registered account introduced in 2023 that combines an RRSP-style tax deduction with TFSA-style tax-free withdrawals, for buying a first home.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year growth schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Future value | Total contributions | Total interest earned |
|---|---|---|---|
| $500/mo · 6% · 10yr | $81,939.67 | $60,000.00 | $21,939.67 |
| $666/mo · 6% · 5yr (~max) | $46,466.84 | $39,960.00 | $6,506.84 |
| $10k + $300/mo · 7% · 8yr | $55,937.91 | $38,800.00 | $17,137.91 |
| $250/mo · 5% · 15yr | $66,822.24 | $45,000.00 | $21,822.24 |
How This Calculator Works
Enter your current FHSA balance, monthly contribution, the return you expect, and the years saving. The calculator compounds the balance monthly and shows the projected value and the growth. The FHSA is uniquely generous: contributions are tax-deductible (like an RRSP), and qualifying withdrawals to buy your first home — including all the growth — are completely tax-free (like a TFSA).
The Formula
Future Value with Regular Contributions
P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
$500 a month for 10 years at 6% grows to about $81,940, with roughly $21,940 of that being growth — tax-free if used for a first home. The FHSA (First Home Savings Account) launched in 2023 to help Canadians save for a first home. It blends the best of two accounts: like an RRSP, contributions reduce your taxable income (a deduction now); and like a TFSA, qualifying withdrawals to purchase a first home are entirely tax-free, growth included. Contributions are capped at $8,000 a year and $40,000 over your lifetime.
Key Insight
The FHSA is the most tax-advantaged way for first-time buyers to save in Canada, because it stacks both major tax benefits, and a few rules define how to use it. The double benefit: contributions are deductible from taxable income (like an RRSP), cutting your tax now at your marginal rate, and qualifying withdrawals for a first home come out completely tax-free with all investment growth (like a TFSA) — most registered accounts give you only one of these, the FHSA gives both. Limits: you can contribute up to $8,000 per year and $40,000 over your lifetime; unused annual room carries forward (you can carry up to $8,000 of unused room into the next year, so a max of $16,000 in one year after skipping a year), and the deduction, like an RRSP, can be carried forward to claim in a higher-income year. Eligibility: you must be a Canadian resident, at least 18, and a first-time home buyer (not having owned a home you lived in during the year of opening or the prior four calendar years). Time limit: the FHSA can stay open for up to 15 years (or until the end of the year you turn 71, or the year after a qualifying withdrawal) — if you don't buy a home, you can transfer the funds tax-free into your RRSP/RRIF (without using RRSP room), so the savings aren't wasted. It can be combined with the RRSP Home Buyers' Plan for even more first-home buying power. This calculator gives a gross, constant-return projection and omits the contribution caps and fees; in practice contribute within the $8,000/year limit, claim the deduction (ideally in a high-income year), favour low-cost investments, and ensure the withdrawal qualifies so the growth stays tax-free.
Frequently Asked Questions
How is FHSA growth calculated?
Your balance and monthly contributions compound at the expected return (annual rate ÷ 12 per month). $500/month for 10 years at 6% grows to about $81,940, with roughly $21,940 of growth — all tax-free if withdrawn to buy a qualifying first home.
What is an FHSA?
Canada's First Home Savings Account, launched in 2023. It combines an RRSP-style tax deduction on contributions with TFSA-style tax-free qualifying withdrawals for a first home. Contributions are capped at $8,000 a year and $40,000 over your lifetime.
Why is the FHSA so tax-efficient?
Because it stacks both major tax benefits: contributions are deductible (cutting tax now, like an RRSP), and qualifying first-home withdrawals — including all growth — are completely tax-free (like a TFSA). Most registered accounts give you only one of these; the FHSA gives both.
Who can open an FHSA?
Canadian residents aged 18 or older who are first-time home buyers — meaning you haven't owned a home you lived in during the year you open it or the previous four calendar years. The account can stay open up to 15 years (or until you turn 71), and can be combined with the RRSP Home Buyers' Plan.
What if I don't buy a home?
The savings aren't lost — you can transfer the FHSA funds tax-free into your RRSP or RRIF without using RRSP contribution room. Only withdrawals not used for a qualifying first home (and not transferred) would be taxable. So the FHSA carries little downside even if your plans change.
Related Calculators
Methodology & Review
The future value compounds a starting balance plus a fixed monthly contribution at the annual return, compounded monthly. It assumes a constant return and end-of-month deposits, and does not enforce the FHSA annual ($8,000) or lifetime ($40,000) contribution limits, model fees, or the requirement that withdrawals be for a qualifying first home to be tax-free.
Written by Ugo Candido · Last updated May 22, 2026.