Tax-Free Savings Account

TFSA Growth Calculator 2026

See how much your TFSA could be worth over time. All growth and withdrawals are tax-free, so what you see here is what you keep.

Your Plan

Starting balance

Monthly contribution

Expected annual return (%)

Years

One-time top-up now (optional)

Inflation for real value (%)

Assumes contributions are made at the end of each month and returns compound monthly. Real return is shown in today's dollars.

How to Use This Calculator

Enter your starting balance. Use what is in the TFSA today, or leave it at 0 if you are opening a new account.
Add a one-time top-up if you have unused contribution room and intend to use it straight away. This is added at the start, so it compounds for the full period.
Enter a monthly contribution. For reference, the 2026 limit of $7,000 works out to about $583 a month. Remember the annual limit is new room, not a cap — you can also contribute any accumulated unused room.
Set an expected annual return. A balanced portfolio has historically returned roughly 5–7% a year. Try a low, middle and high figure to see the range rather than trusting a single number.
Choose your time horizon. Longer periods show the compounding effect far more dramatically than higher returns do.
Set an inflation rate. This converts the final balance into today's dollars, which is usually the more honest number for planning.
Read the results. Total contributed is your own money. Investment growth is what compounding added — and in a TFSA, none of it is taxed.
Scroll the year-by-year table to find the point where growth overtakes your contributions. That crossover is when compounding starts doing the heavy lifting.

Why TFSA Growth Compounds So Effectively

A TFSA has three features that compound on each other: you pay no tax on interest, dividends or capital gains inside the account; you pay no tax when you withdraw; and withdrawals do not reduce your contribution room permanently — the amount comes back the following January.

Because nothing is taxed along the way, the full return is reinvested every year. Over a long horizon the difference is substantial: keeping an extra 20% of your annual return working for 25 years adds up to far more than 20% of the final balance.

Frequently Asked Questions

Can I contribute more than the annual limit if I have unused room?

Yes. The annual limit is not a cap on what you can put in this year — it is how much new room you gain each January 1. If you have accumulated unused room from earlier years, you can contribute that plus the current year's limit. For 2026 the limit is $7,000, and anyone eligible since 2009 has $109,000 of cumulative room.

What return should I assume?

It depends entirely on your asset mix. A balanced portfolio has historically returned roughly 5–7% a year over long periods, a bond-heavy portfolio less, and an all-equity portfolio more but with much larger swings. Use a range and plan around the low end. No calculator can predict markets, so treat any single figure as one scenario rather than a forecast.

Does a TFSA affect my taxes or government benefits?

No. TFSA withdrawals are not taxable income and are not reported on your tax return, so they do not affect your marginal tax rate or income-tested benefits such as the GIS, the Canada Child Benefit, or the OAS recovery tax. That is one of the main advantages of a TFSA over an RRSP.

What happens to my room if my investments lose value?

Contribution room is tracked in contributions and withdrawals, not in market value, so investment losses do not reduce your room and gains do not increase it. If you contribute $10,000 and it falls to $6,000, you can still only withdraw $6,000 — and only that $6,000 is added back to your room the following year.

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Disclaimer: This is a compound-growth projection, not a forecast. Real returns vary and can be negative in any given year. Figures are for illustration only and are not financial advice.