Tools & Calculators / TFSA Growth
Canada

TFSA Growth Calculator

See how much more your money grows tax-free in a TFSA — compared to a regular taxable account.

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Your TFSA

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years
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Investment & Tax Details

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Your TFSA Tax Advantage
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more in your pocket vs a taxable account
TFSA Value
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100% tax-free
Taxable Account
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after annual tax drag
Total Contributed
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over {{ yearsStr }} years
Tax-Free Growth
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sheltered from CRA
TFSA Winner
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Total Contributions{{ contributedStr }}
Investment Growth+{{ growthStr }}
Tax on Growth$0
Tax on Withdrawal$0
Taxable Account Tax Drag
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Total Contributions{{ contributedStr }}
Gross Growth+{{ grossGrowthStr }}
Annual Tax Paid−{{ annualTaxStr }}
Unrealized Gains Tax−{{ cgTaxStr }}
TFSA vs Taxable Account Over Time
TFSA Taxable Contributions
Years →
YearContributionTFSATaxableAdvantage
{{ row.year }}{{ row.contribution }}{{ row.tfsa }}{{ row.taxable }}{{ row.advantage }}
Why the TFSA Advantage Grows Over Time: In a taxable account, you pay tax on investment income every year — this is called “tax drag.” That money can no longer compound for you. Over 20+ years, the compounding effect of sheltered growth becomes enormous. The higher your return and tax bracket, the bigger the TFSA advantage.
Note: The taxable account comparison assumes annual taxation of investment income at your selected marginal rate, adjusted for investment type (interest taxed at 100%, capital gains at 50% inclusion, eligible dividends with gross-up and tax credit). Actual results vary. Investment returns are not guaranteed. This calculator is for illustration purposes.

Why a TFSA Grows Faster Than a Taxable Account

Every dollar of investment income earned inside a TFSA — whether interest, dividends, or capital gains — is completely tax-free. You never pay tax on the growth, and withdrawals are tax-free too. In a regular taxable account, the CRA takes a cut of your returns every year. This annual “tax drag” means less money stays invested, which means less money compounding.

The impact is small in year one, but it snowballs over time. Over 20–30 years, the TFSA advantage can amount to tens of thousands of dollars — especially for higher-income investors or those holding interest-bearing investments. The type of investment matters too: interest income is fully taxed annually (worst case), while capital gains are deferred and taxed at a lower rate (smallest TFSA advantage).

Disclaimer: This calculator provides estimates for illustration purposes. The taxable account comparison uses simplified annual tax drag calculations — actual results depend on your specific holdings, rebalancing, and realized gains. Investment returns are not guaranteed. Dividend tax credit calculations are approximate. This does not account for provincial surtaxes or the Ontario Health Premium. Consult a financial advisor for personalized advice.

Other TFSA Calculators You Might Like
Contribution Room→ Over-Contribution Penalty→ TFSA vs Non-Registered→ Retirement Income→