TFSA Calculator
Enter your current TFSA balance, monthly contribution and expected return to project tax-free growth — and see how much tax you avoid compared with an unregistered account.
Annual room added each year is currently $7,000.
Used to estimate the tax you would have paid outside a TFSA.
Rough estimate at a 19.6% marginal rate, assuming growth would have been taxed as capital gains.
- TFSA balance
- What you contributed
The gap between the two lines is growth you never pay tax on.
Enter amounts to see this chart.
| Year | Contributed | Balance |
|---|
What this means
Inside a TFSA, every dollar of that $0 growth is yours — no tax on withdrawal, and withdrawing does not cost you the room permanently.
How it works
A TFSA holds investments, not just cash. Growth and withdrawals are completely tax-free, and any amount you withdraw is added back to your contribution room the following January. Over-contributing is taxed at 1% per month on the excess.
Projection only. Returns vary year to year, and TFSA limits change annually (currently $7,000).
Nothing you type here is saved or sent anywhere — it stays in your browser.
How TFSA room works
Room accumulates every year from the year you turn 18 (the 2025 annual limit is $7,000) and unused room carries forward indefinitely. Withdraw money and that amount returns to your room — but only on January 1 of the following year, not immediately. Over-contributing costs 1% per month on the excess, so check your room in CRA My Account before topping up.
TFSA vs RRSP
TFSA contributions are made with after-tax money and withdrawals are completely tax-free, which suits lower-income years and any goal you may need to reach before retirement. RRSP contributions cut this year's taxable income but are taxed on withdrawal, which suits higher-earning years.
What to hold inside it
A TFSA can hold cash, GICs, ETFs, stocks and mutual funds. Because growth is never taxed, long-horizon investments get the most benefit from the shelter — though a TFSA savings account is still a sensible home for an emergency fund.
Common questions
- Are TFSA withdrawals taxed?
- No. Withdrawals of both contributions and growth are tax-free and do not affect income-tested benefits.
- When can I re-contribute what I withdrew?
- On January 1 of the following year. Re-contributing in the same year, when your room is already used, creates an over-contribution taxed at 1% per month.
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