Savings › Tax-Free Savings Account Calculator

Tax-Free Savings Account Calculator

See what a tax-free savings account could grow to, when you will reach the R 500 000 lifetime limit, and whether your plan goes over the R 46 000 annual limit.

Your TFSA

Current TFSA value

Total contributed so far (all your TFSAs)

Monthly contribution

Lump sum each tax year (optional)

Annual return assumption

Years

EST. VALUE

—

After the years you chose

YOUR CONTRIBUTIONS

—

Up to the annual and lifetime limits

TAX-FREE GROWTH

—

Interest, dividends and gains

Lifetime limit reached: —Penalty on your plan each year: —

Worked example

These are the calculator's starting values, so the results above match this example until you change an input.

Putting R 3 000 a month into a new tax-free savings account that grows at 9% a year gives R 1 093 311,12 after 15 years.

R 36 000 a year is inside the R 46 000 annual limit, but the R 500 000 lifetime limit is reached in year 14, so contributions stop there: you put in R 500 000 and the other R 593 311,12 is growth with no tax on interest, dividends or capital gains.

How a tax-free savings account works

A tax-free savings account (TFSA) is a savings or investment account where you pay no tax on interest, dividends or capital gains, and nothing when you withdraw. Banks, asset managers and investment platforms all offer them. In return, SARS limits how much you can put in.

TFSA limits for 2026/27

Limit	Amount
Annual contribution limit	R 46 000 (from 1 March 2026; it was R 36 000)
Lifetime contribution limit	R 500 000
Tax on contributions above either limit	40% of the excess

The limits count what you put in, not what the account is worth. Growth does not use up your limit, so a TFSA worth R 900 000 built from R 500 000 of contributions is within the rules. The annual limit applies per tax year (1 March to the end of February) across all your TFSAs together.

Withdrawals do not give you the limit back

If you take money out, what you contributed still counts toward both limits. Withdrawing R 20 000 and putting it back later uses R 20 000 of new limit, which is why a TFSA works best for long-term money you will not need to touch. Moving money directly from one provider's TFSA to another (a transfer) is not a new contribution.

How this calculator works

Contributions are added at the end of each month, with the optional lump sum in the first month of each tax year, and growth compounds monthly at the return you enter. Contributions stop at the annual or lifetime limit, because anything above it would be taxed at 40%. Returns are not guaranteed, and fees reduce the growth you actually get.

Sources and review note

TFSA limits checked on 13 October 2026 against SARS: tax-free investments. The annual limit rose from R 36 000 to R 46 000 on 1 March 2026; the lifetime limit stays at R 500 000. This page is general educational information, not tax or financial advice.

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Frequently asked questions

How much can I put into a tax-free savings account in 2026?

R 46 000 in the tax year from 1 March 2026 to 28 February 2027, across all your TFSAs together, and R 500 000 over your lifetime.

What happens if I go over the TFSA limit?

SARS charges tax of 40% on the amount above the limit when you file your return. Putting in R 50 000 in one tax year, for example, means R 1 600 tax on the R 4 000 excess.

Can I open a TFSA for my child?

Yes. A child has the same limits as an adult, and contributions made for them use up their own R 500 000 lifetime limit.

Does growth count towards the R 500 000 limit?

No. Only contributions count. Interest, dividends and gains can take the account well beyond R 500 000.

Is a TFSA better than a retirement annuity?

They do different jobs. A retirement annuity gives you a tax deduction now but locks most of the money until you retire; a TFSA gives no deduction, but everything you take out is tax-free and you can withdraw at any time. Many people use both.

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