Tax-Free Savings Calculator
Calculate your Tax-Free Savings Account (TFSA) growth. R36,000 annual limit, R500,000 lifetime cap. All interest and capital gains are completely tax-free.
How SA Tax-Free Savings Works
A Tax-Free Savings Account (TFSA) is a registered investment account where all returns — interest, dividends, and capital gains — are 100% exempt from tax. It was introduced in South Africa on 1 March 2015.
- Annual limit: R36,000 per tax year (1 March to 28 February)
- Lifetime limit: R500,000 in contributions
- Penalty: 40% tax on contributions above limits
- Withdrawals: Allowed anytime, but don't restore limits
- Investment types: Bank deposits, unit trusts, ETFs, shares
The Extended Calculator below adds a TFSA vs taxable account growth chart and lifetime contribution progress tracker. The Professional Calculator provides multi-year contribution planning, over-contribution penalty calculator, and provider comparison.
Year-by-Year Comparison
| Year | TFSA Balance | Taxable Balance | TFSA Advantage |
|---|---|---|---|
| 5 | R 322 287 | R 321 604 | R 684 |
| 10 | R 760 809 | R 712 265 | R 48 544 |
| 15 | R 1 359 935 | R 1 140 846 | R 219 089 |
| 20 | R 2 190 188 | R 1 604 419 | R 585 769 |
TFSA Growth Example
| Years | Total Contributed | Value at 10% p.a. | Tax-Free Growth |
|---|---|---|---|
| 5 years | R180,000 | ~R227,000 | ~R47,000 |
| 10 years | R360,000 | ~R590,000 | ~R230,000 |
| 13.9 years | R500,000 (max) | ~R938,000 | ~R438,000 |
| 20 years | R500,000 (max) | ~R1,870,000 | ~R1,370,000 |
Assumes R36,000/year contributions and 10% annual return. After reaching R500,000 limit, balance continues to grow tax-free with no new contributions.
TFSA vs Regular Savings Account
The key advantage of a TFSA becomes significant over time. On a regular savings account, interest earned is added to your taxable income each year. At a 41% marginal tax rate, a 10% gross return becomes only 5.9% net. Inside a TFSA, the full 10% compounds tax-free every year — creating a massive difference over 15–20 years.
Over-Contribution Penalty Calculator
Provider Comparison (20-Year Projection)
| Provider / Fund | Gross Return | TER | Net Return | 20-Year Value |
|---|---|---|---|---|
| Easy Equities (JSE Top40) (best) | 12.5% | 0.25% | 12.25% | R 3 050 802 |
| Sygnia Skeleton Balanced 70 | 11.2% | 0.48% | 10.72% | R 2 403 203 |
| Satrix Balanced Index | 10.8% | 0.61% | 10.19% | R 2 211 639 |
| Coronation Balanced Plus | 11.0% | 1.01% | 9.99% | R 2 143 267 |
| Allan Gray Balanced | 10.5% | 1.03% | 9.47% | R 1 974 952 |
Year-by-Year Projection
| Year | Balance | Total Contributions | Interest Earned |
|---|---|---|---|
| 1 | R 127 020 | R 186 000 | R -58 980 |
| 4 | R 296 619 | R 294 000 | R 2 619 |
| 7 | R 436 706 | R 330 000 | R 106 706 |
| 10 | R 573 366 | R 330 000 | R 243 366 |
| 13 | R 752 791 | R 330 000 | R 422 791 |
| 16 | R 988 363 | R 330 000 | R 658 363 |
| 19 | R 1 297 654 | R 330 000 | R 967 654 |
| 22 | R 1 703 732 | R 330 000 | R 1 373 732 |
| 25 | R 2 236 885 | R 330 000 | R 1 906 885 |
| 28 | R 2 936 879 | R 330 000 | R 2 606 879 |
| 30 | R 3 521 392 | R 330 000 | R 3 191 392 |