Canada TFSA Calculator: What Your Tax-Free Savings Grow To
Work out what a Canadian Tax-Free Savings Account (TFSA) grows to from a starting balance plus regular monthly contributions — with all growth and withdrawals completely tax-free.
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 |
|---|---|---|---|
| $10k + $500/mo · 6% · 10yr | $100,133.64 | $70,000.00 | $30,133.64 |
| $0 + $300/mo · 7% · 25yr | $243,021.51 | $90,000.00 | $153,021.51 |
| $40k + $0/mo · 5% · 15yr (lump only) | $84,548.16 | $40,000.00 | $44,548.16 |
| $5k + $583/mo · 6% · 20yr | $285,920.86 | $144,920.00 | $141,000.86 |
How This Calculator Works
Enter your current TFSA balance, monthly contribution, expected return, and years invested. The calculator compounds the balance monthly and shows the ending value and how much is growth. The TFSA's defining feature: investment income and withdrawals are tax-free, and withdrawals don't reduce your future contribution room.
The Formula
Future Value with Regular Contributions
P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
A $10,000 TFSA plus $500 a month for 10 years at 6% grows to about $100,134 — with roughly $30,134 of that being tax-free investment growth. The TFSA is a uniquely flexible Canadian account: contributions are made with after-tax dollars (no deduction now), but all growth and qualified withdrawals are tax-free, and any amount you withdraw is added back to your contribution room the following year. It can hold cash, GICs, stocks, ETFs, and mutual funds — it's an investment account, not just a savings account.
Key Insight
The TFSA is one of the most flexible savings vehicles in Canada, and using it well comes down to understanding its rules versus the RRSP. Contributions are after-tax (unlike RRSP contributions, which are tax-deductible), but in exchange all growth and withdrawals are completely tax-free, and — crucially — withdrawing money frees up that contribution room again the next calendar year, making the TFSA ideal for both long-term investing and flexible goals. Key points: the CRA sets an annual contribution limit and your total room accumulates from the year you turned 18 (or 2009, whichever is later), with unused room carrying forward indefinitely — so many Canadians have substantial cumulative room; this calculator doesn't enforce the limit, so confirm your contributions fit your available room to avoid the 1%/month over-contribution penalty. The TFSA can hold investments, not just cash, so for long horizons holding growth assets (stocks/ETFs) inside it maximizes the tax-free compounding. TFSA vs RRSP rule of thumb: the RRSP (deduction now, taxed on withdrawal) generally wins if you're in a higher tax bracket now than you expect in retirement; the TFSA wins if your tax rate is similar or higher later, or when you want flexibility and tax-free withdrawals (it also doesn't affect income-tested benefits since withdrawals aren't taxable income). Many Canadians use both. The projection is a constant-return estimate, so real markets will vary — but the tax-free nature means every dollar of growth shown is yours to keep.
Frequently Asked Questions
How is TFSA growth calculated?
Your starting balance and each monthly contribution compound at the expected return (annual rate ÷ 12 per month). $10,000 plus $500/month for 10 years at 6% grows to about $100,134, with roughly $30,134 of that being tax-free growth.
Are TFSA withdrawals really tax-free?
Yes. Contributions are after-tax (no deduction), but all investment growth and withdrawals are completely tax-free. And the amount you withdraw is added back to your contribution room the following calendar year, so the TFSA is highly flexible for both investing and goals.
What's the TFSA contribution limit?
The CRA sets an annual limit, and your total room accumulates from the year you turned 18 (or 2009), with unused room carrying forward — so cumulative room can be large. This calculator doesn't enforce it, so confirm your contributions fit your available room; over-contributing triggers a 1%-per-month penalty.
TFSA or RRSP — which should I use?
Roughly: the RRSP (tax-deductible now, taxed on withdrawal) tends to win if you're in a higher tax bracket now than in retirement; the TFSA wins if your tax rate is similar or higher later, or when you value flexibility and tax-free withdrawals. The TFSA also doesn't affect income-tested benefits. Many Canadians use both.
Can a TFSA hold investments, not just cash?
Yes — despite the name, a TFSA can hold cash, GICs, stocks, ETFs, bonds, and mutual funds. For long horizons, holding growth investments inside the TFSA maximizes the tax-free compounding, which is where the account's value really shows over time.
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Methodology & Review
The future value compounds a starting balance and a fixed monthly contribution at the annual return, compounded monthly. It assumes deposits at month end and a constant return; it does not enforce the annual or cumulative TFSA contribution limit set by the CRA.
Written by Ugo Candido · Last updated May 22, 2026.