TFSA Calculator Canada 2025
Calculate your contribution room, project tax-free growth, and compare TFSA vs RRSP to find the best savings strategy for your situation.
Estimates use federal rates only. Provincial taxes vary. Not financial advice.
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How to Use This Calculator
Tab "Contribution Room"
Select your year of birth and the year you became a Canadian resident. Enter your total lifetime contributions (not your current balance โ contributions made, regardless of gains or losses). Optionally add withdrawals made in a prior year to see the room restored on January 1 of the next year. The calculator shows your cumulative room earned, current available room, and any over-contribution penalties.
Tab "Growth Projection"
Enter your current TFSA balance, planned annual contributions, expected annual return, and investment horizon. The calculator projects your tax-free balance over time and estimates how much tax you save compared to holding the same investments in a non-registered (taxable) account.
Tab "TFSA vs RRSP"
Enter your current income, amount to invest, and expected retirement income. The calculator compares the after-tax outcome of investing in a TFSA versus an RRSP over your time horizon. It also shows what happens if you reinvest the RRSP tax refund, which can tip the balance in favour of the RRSP strategy.
The Formulas
Available room = Cumulative room earned - Total contributions + Withdrawal add-backs
Cumulative room = Sum of annual limits for each year you were 18+ and a Canadian resident
Over-contribution penalty:
Penalty = Excess amount x 1% per month
Growth projection:
Balance(n) = Balance(n-1) x (1 + return rate) + Annual contribution
Tax saved = Total growth x Estimated marginal rate
TFSA vs RRSP:
TFSA future value = Contribution x (1 + r)^n (all tax-free on withdrawal)
RRSP future value = Contribution x (1 + r)^n x (1 - retirement marginal rate)
RRSP with reinvested refund = RRSP after-tax + (Refund x (1 + r)^n)
2025 TFSA annual limits history:
2009-2012: $5,000 | 2013-2014: $5,500 | 2015: $10,000
2016-2018: $5,500 | 2019-2022: $6,000 | 2023: $6,500 | 2024-2025: $7,000
TFSA room accumulates regardless of whether you file a tax return. Withdrawals are added back on January 1 of the following year โ not immediately. Non-residents do not accumulate new room but existing room is preserved.
Example
Sarah โ Teacher in Toronto, born 1990, resident since 2009
Sarah has been a Canadian resident since turning 18 in 2008 (but TFSA started in 2009). She has contributed $65,000 total over the years and withdrew $10,000 in 2023.
Sarah has $47,000 of available room. She could contribute up to the full amount immediately without penalty. If she invests $47,000 at 7% annual return for 20 years, it would grow to approximately $181,800 โ all completely tax-free. In a taxable account, she would owe capital gains tax on the $134,800 in growth.
2025 TFSA Key Numbers
| Item | Amount |
|---|---|
| 2025 annual contribution limit | $7,000 |
| Cumulative room (resident since 2009, 18+ every year) | $102,000 |
| Over-contribution penalty | 1% per month on excess |
| Tax on withdrawals | None |
| Withholding tax on withdrawals | None |
| Effect on government benefits | None (not counted as income) |
| Qualifying investments | GICs, mutual funds, stocks, bonds, ETFs |
| Minimum age | 18 (age of majority in your province) |
| Successor holder (spouse) | Tax-free transfer on death |
| Indexing | $500 increments, rounded down |