TFSA calculator

This TFSA calculator helps you to understand how contributions to your TFSA will help you achieve your financial goals.
TFSA Total Balance:
Non-Registered Total Balance:
Benefit received from investing in TFSA:
Marginal Tax Rate:

What is a TFSA?

A Tax-free Savings Account (TFSA) is a type of Canadian savings plan that lets you earn money from your investments without paying any taxes on them. You can use a TFSA to save for any financial goal – whether it’s for a few months or many years. You can also take out money from your TFSA when you need it without any tax consequences. You can contribute up to your maximum contribution room, which is based on the accumulation of annual limits since you were eligible to participate in the TFSA program. Another benefit of the TFSA is that money withdrawn from a TFSA in the current year is available as contribution room for use in the following year.

Who can open and participate in a TFSA?

To open a TFSA, you can be a resident of Canada, have a valid social insurance number (SIN) as well, and meet the age requirement of 18 years or older (this age requirement is 19 in certain provinces and territories). Furthermore, you need to remain a resident of Canada to continue to actively participate in certain aspects of the TFSA.

TFSA contribution limits

It is important to review the annual TFSA contribution limit – as well as your total contribution room before making contributions to ensure that you do not over-contribute to your TFSA. If you do over-contribute to your TFSA you will incur a penalty of 1% for the highest excess contribution amount each month until your account is no longer over-contributed. Here are the annual TFSA contribution limits for the past three years:

The annual TFSA contribution limit is indexed to inflation with the inflation-adjusted TFSA limit rounded to the nearest $500 – this is why the contribution limit increased from $6,500 in 2023 to $7,000 in 2024.

Total possible contribution room

If you have never contributed to your TFSA and you were at least 18 years old in 2009 and complied with the other requirements for opening a TFSA – you could contribute a maximum of $95,000 in your TFSA for 2024. However, if you have already contributed to your TFSA – or turned 18 years old after 2009, this maximum contribution room will be less. If you want to calculate your total possible contribution room – you can do so quickly with our TFSA contribution room calculator.

What type of investments can you have in a TFSA?

The TFSA allows for many different types of investments – including stocks, bonds, exchange-traded funds (ETFs), mutual funds, cash, and guaranteed investment certificates (GICs). This is very beneficial since investors can select investments that will allow them to achieve their financial goals taking into consideration factors such as how much risk they can tolerate and the time horizon of their financial goals.

How to use the TFSA calculator

Our TFSA growth calculator shows you how much your TFSA could be worth to help you save for your financial goals. This calculator takes into account your contributions, rate of return as well as years you are invested.

Initial Contribution: This is the amount that you are planning on contributing to your TFSA initially or the current balance of your TFSA account.

Ongoing Contribution:This is the amount of your income that you will contribute to your TFSA on an annual basis.

Income: This is your before-tax annual income. We use this in combination with your province to calculate your marginal tax rate. This allows the TFSA calculator to show you the benefit of investing in a TFSA compared to a non-registered investing account.

Rate of Return: The rate of return is how much you expect your investments to grow annually.

Periods: The periods indicate how long you are planning to invest in your TFSA. Each period is one year that you will hold the specified investments in your TFSA. The graph starts at year zero which is when you contribute your initial investment. The first year would be the end of a full year that your total contributions have been invested for.

Province: This relates to the province in Canada in which you reside. This field in combination with the annual income field determine your marginal tax rate.

Marginal Tax Rate: The marginal tax rate is the tax rate that you pay on each additional dollar of income earned. The marginal tax rate is calculated by combining the federal and provincial rates based on the province you live in and the income you earn.

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Legal Disclaimer

This calculation is for illustrative purposes only and should not be relied upon as specific financial advice. You should speak with a professional before making any final decisions to ensure that your financial needs have been properly taken into account.