This calculator projects how savings in a Tax-Free Savings Account (TFSA) grow with interest or investment returns, next to the same savings in a taxable account. Looking for how much you can contribute? Use the TFSA contribution room calculator; the 2026 dollar limit is $7,000.
Below: a worked example, what rate to enter, how much is enough and average balances by age.
What does the TFSA calculator work out?
The calculator adds a year’s contributions at the start of the year and grows the balance once a year at your rate of return, with no fees deducted. The taxable account gets the same deposits, but a third of each year’s return is taxed at your marginal rate; the TFSA advantage is that tax plus the growth it would have earned.
A worked example you can check
Say you have $10,000 saved and contribute $500 a month, 12 payments that the calculator adds as $6,000 at the start of each year. Over 10 years at 5% a year, the TFSA reaches $95,529.67: your savings, $60,000 of contributions and $25,529.67 of growth. With a marginal tax rate of 30%, the taxable account grows at 4.5% a year after tax and reaches $92,576.77. The TFSA advantage of $2,952.90 is $2,508.53 of tax paid plus $444.37 that the tax would have earned. The calculator gives the same figures.What the projection leaves out:
- Your room. A warning appears when a year’s contributions add up to more than the 2026 dollar limit, but you may contribute more than the annual limit if you have unused room from previous years. An excess is taxed at 1% a month (penalty calculator).
- Fees. Costs may reduce your return; a rate after fees allows for them.
- Inflation, withdrawals and foreign withholding tax aren’t modelled.
- Timing. Weekly or monthly contributions earn a full year of growth, which slightly overstates the result.
What rate of return should you enter?
The box starts with an example rate, not a forecast: investments can lose value. A deposit TFSA works like a savings account or GIC, so for one of those the rate is the interest it pays. For long-term (10+ years) projections, financial planners can use the Projection Assumption Guidelines from FP Canada Standards Council and the Institute of Financial Planning. The 2026 guidelines assume 2.1% inflation and nominal returns of 2.4% short term, 3.2% for fixed income and 6.3% for Canadian equities, before fees, which are subtracted to get the net return. GICs in a TFSA and best TFSA accounts compare the options.
How much tax does a TFSA save compared with a taxable account?
Income earned in a TFSA is generally tax-free, even when withdrawn. The calculator’s taxable account taxes a third of each year’s return, but tax rules differ by type of investment. Interest is included in income, and on most investments made in 1990 or later it is reported each year as it is earned. With a third of each year’s return taxed at your marginal rate, the calculator shows less tax on interest than including all of it in your income would, and so a smaller TFSA advantage; a capital gain is reported when you sell or transfer the investment. The marginal tax rate calculator estimates your rate, and TFSA vs a non-registered account compares each type of income.
How much is enough in a TFSA?
If you mean how much you can put in, that is your contribution room. How much is enough to hold depends on what you would take out each year, for how many years, what the balance earns meanwhile and inflation; the calculator above shows what your contributions could reach. Withdrawals are generally tax-free. Income earned in a TFSA and TFSA withdrawals don't reduce federal benefits such as OAS, GIS and EI, or credits such as the Canada child benefit, the Canada workers benefit and the Canada Groceries and Essentials Benefit (formerly the GST/HST credit). (Details.) How much you need to retire works through a retirement budget, and what to do with money after retirement covers drawing it down.
What is the average TFSA balance by age?
The CRA’s TFSA statistics for the 2024 contribution year give each age group’s average balance (fair market value) and unused contribution room, age as of December 31:
| Age group | Average TFSA balance | Average unused room |
|---|---|---|
| Under 20 | $4,179 | $6,915 |
| 20 to 24 | $8,652 | $22,983 |
| 25 to 29 | $13,967 | $44,346 |
| 30 to 34 | $18,475 | $63,600 |
| 35 to 39 | $21,561 | $66,934 |
| 40 to 44 | $24,061 | $66,918 |
| 45 to 49 | $28,084 | $66,094 |
| 50 to 54 | $35,235 | $62,659 |
| 55 to 59 | $43,519 | $57,618 |
| 60 to 64 | $52,381 | $51,778 |
| 65 to 69 | $59,344 | $47,232 |
| 70 to 74 | $64,972 | $44,264 |
| 75 to 79 | $71,094 | $41,030 |
| 80 and over | $76,305 | $36,526 |
| All ages | $38,566 | $52,735 |
These are averages across TFSA holders. They are not medians or targets; the calculator projects a balance from your own figures.
Related calculators and guides
- TFSA contribution room calculator: your room.
- TFSA or RRSP first, with the numbers in the RRSP vs TFSA calculator.
- When your TFSA is full: where to save next.
- Compound interest calculator: savings outside a TFSA.
- TFSA hub: the other TFSA guides.
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
- Canada Revenue Agency: If you owe tax on excess TFSA amounts
- Canada Revenue Agency: What is a TFSA
- FP Canada: 2026 PROJECTION ASSUMPTION GUIDELINES
- Government of Canada: Table 3A: TFSA Contributions, Withdrawals, and Fair Market Value by Gender and Age Group