TFSA Calculator (Canada)
See how your TFSA could grow tax-free over time.
What a TFSA is
A Tax-Free Savings Account lets money grow without tax on the interest, dividends or gains, and you can withdraw it at any time without paying tax. Unlike an RRSP, contributions are not tax deductible.
Contribution room
The annual limit for 2026 is $7,000. If you have been eligible since the program began in 2009 and never contributed, your total room is $109,000. Withdrawals are added back to your room, but only from 1 January of the next year, so withdrawing and recontributing in the same year can cause an over-contribution. Check your room in CRA My Account.
Example
Starting with $10,000 and adding $7,000 each year at 5% for 20 years gives about $257,995. You would have paid in $150,000, so about $108,000 is tax-free growth.
Keep in mind
The return is not guaranteed, and the account type does not change what you invest in. A TFSA can hold savings, GICs or investments, so the return depends on your choice. The figures assume contributions at the end of each year.
Frequently asked questions
Do I pay tax on TFSA withdrawals?
No. Withdrawals are tax-free, and they do not count as income for most benefit calculations.
What happens if I over-contribute?
The CRA charges a tax of 1% a month on the excess amount, so check your room before adding money.
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