TFSA Calculator (2026)
See how much your Tax-Free Savings Account can grow — every dollar of growth and every withdrawal is completely tax-free, forever.
How to use this calculator
- Enter monthly contribution.
- Enter years to grow.
- Enter expected annual return.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
A TFSA is an account where contributions are made with after-tax dollars, but investment growth and withdrawals are never taxed — not now, not ever. The 2026 annual contribution limit is $7,000, and if you've been eligible since the TFSA launched in 2009, your total contribution room to date is $109,000. Unused room carries forward, and a withdrawn amount is added back to your room the following year. The calculator compounds your monthly contribution at your expected return. Worked example: $400 a month at 6% for 20 years grows to about $185,000 — you contributed $96,000 and earned roughly $89,000 of tax-free growth. Over-contributing triggers a 1%-per-month penalty on the excess.
Frequently asked questions
What is the TFSA limit for 2026?
$7,000, the same as 2025. Cumulative contribution room for someone 18+ since 2009 is $109,000. The limit is indexed to inflation in $500 increments, so some years it stays flat.
What happens if I over-contribute to my TFSA?
You pay a 1% penalty per month on the excess until it's withdrawn. The CRA sends a letter if you exceed your room, but it's easy to avoid: track your deposits and remember that withdrawals from one year only restore room the next.
TFSA vs RRSP — which should I use?
If your tax rate now is similar to retirement, a TFSA and RRSP give identical results. The TFSA wins if you expect higher taxes later, need the money anytime (no withdrawal tax), or are a lower earner now. The RRSP wins if you're in a high bracket now and expect a low one in retirement — but you must pay tax on withdrawals.
What can I hold inside a TFSA?
Almost anything you can hold in a regular account: stocks, ETFs, mutual funds, GICs, bonds, and even cash in a savings account. Trading frequently inside a TFSA can attract CRA scrutiny (business income), but long-term investing is fully sheltered.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect the current tax year and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: canada.ca tax rates · CPP rates · CMHC mortgage insurance.