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TFSA Growth Calculator Canada
This TFSA calculator for Canada models illustrative tax-free savings growth using your own contribution and return assumptions. Your 2026 TFSA room is $7,000 a year — compare the tax-free path with taxable growth using the RRSP growth calculator, or check what you can afford to contribute with the Ontario salary calculator.
Use the calculator
Enter your own assumptions in the related tool. This page explains what to consider before interpreting the result.
Open Tfsa Calculator →What to consider
Start with the numbers you actually know. For income questions, distinguish gross pay from net pay. For borrowing questions, consider the rate, term, fees, taxes and insurance that apply to your situation. For savings questions, treat the rate of return as an assumption rather than a guarantee.
For Canadian tax, payroll, registered-account and lending questions, rules can change and personal circumstances matter. Use official government, employer, lender or account records to confirm important figures.
What $7,000 a year becomes inside a TFSA
With yearly contributions, the formula is FV = PMT × [((1 + r)n − 1) / r]: each year's deposit (PMT) compounded at the annual return (r) for n years. The examples below assume a steady nominal 6% return, contributions made each year, and no withdrawals. Change the return to match your own expectations.
Example: $7,000 a year for 10 years
$7,000 × [((1.06)10 − 1) / 0.06] = $92,265.56. You contributed $70,000; growth added $22,265.56 — and inside a TFSA, every dollar of that growth is tax-free, as is every dollar you eventually withdraw.
Tax-free vs. taxable: a $7,439.20 gap
Run the same plan in a taxable account where interest is taxed each year at roughly 30%: the after-tax return drops to about 4.2%, and the 10-year total falls to $84,826.36. The TFSA keeps $7,439.20 more — $92,265.56 versus $84,826.36 — because the CRA never takes its annual cut, so compounding runs at full speed.
Withdrawals are tax-free — and the room comes back
TFSA withdrawals are never taxed and never reduce benefits like OAS, GIS or the Canada Child Benefit. Better still, amounts you withdraw are added back to your contribution room on January 1 of the next year. Example: after ten years of $7,000 contributions ($70,000 in), withdraw $20,000 in September 2026 — from January 2027 you may recontribute that $20,000 on top of the new year's limit.
Frequently asked questions
How accurate is this tfsa growth calculator canada?
It is an educational estimate. Results depend on the assumptions you enter and may not match a payroll statement, lender decision, tax assessment or account statement.
What should I enter?
Use your own income, price, balance, rate, payment or contribution assumptions. For tax and payroll questions, verify important figures with official sources.
Can I use this for a final financial decision?
Use it as a planning tool. Confirm final amounts with the relevant employer, lender, financial institution or government source.
Do I pay any tax on TFSA growth or withdrawals?
No. Interest, dividends and capital gains earned inside a TFSA are tax-free, and withdrawals are tax-free too. That is the core difference from an RRSP, where withdrawals are taxed as income in the year you take them.
What happens if I contribute more than my room?
The CRA charges 1% per month on the excess until you remove it. CRA My Account shows your room, but its records can lag by months — keep your own running total of every contribution and withdrawal.
Should I choose the TFSA or RRSP if a raise is coming?
Often the TFSA now, RRSP later: an RRSP deduction can be carried forward and claimed in a future higher-income year, so there is no need to waste the deduction at a low marginal rate today.