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Calculate how long it will take to max out your Tax-Free Savings Account
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Regular Investment vs TFSA: How Your Money Grows (5% Annual Return)
Assumptions used in this example:
- You start with R0 balance.
- Contribute R36 000 each year until you reach the R500 000 TFSA lifetime limit (≈14 years).
- No more contributions after the lifetime limit is reached.
- Annual return of 5%, compounded yearly.
- Contributions are added at the start of each year.
- The regular account pays 27% capital gains tax on profits when withdrawn; the TFSA pays no tax.
Each row below shows what your investment would be worth after a given number of years in a regular account versus a TFSA.
| Years | Regular Account (After Tax) | TFSA Account (Tax‑Free) | Extra Kept (TFSA Advantage) |
|---|
| 10 | R 444 274,37 | R 475 444,34 | R 31 169,97 |
| 20 | R 855 621,22 | R 987 152,36 | R 131 531,14 |
| 30 | R 1 308 816,04 | R 1 607 967,17 | R 299 151,13 |
| 40 | R 2 047 022,63 | R 2 619 209,09 | R 572 186,46 |
| 50 | R 3 249 483,40 | R 4 266 415,61 | R 1 016 932,21 |
| 60 | R 5 208 165,27 | R 6 949 541,47 | R 1 741 376,20 |
| 70 | R 8 398 651,65 | R 11 320 070,75 | R 2 921 419,10 |
| 80 | R 13 595 617,77 | R 18 439 202,42 | R 4 843 584,65 |
This comparison shows how a Tax-Free Savings Account lets your money compound without paying capital gains tax on investment growth. Over time, that difference really adds up. After around 40 years, the TFSA leaves you with about R572 000 more than a regular investment taxed at capital-gains rates — and after 80 years, the advantage grows to about R4.84 million. Assumes the same investment mix and no withdrawals.
Figures assume a steady 5 % annual return, meant to reflect inflation-adjusted (real) growth, so you're seeing the tax benefit rather than compounding from unrealistic returns. For reference, you can view long-term South African CPI data.
Want to learn more about TFSAs and investment strategies?
Read the Complete TFSA Guide →