Tax-free savings account (TFSA) calculator
See how your TFSA could grow with no tax on interest, dividends or capital gains. Contributions are kept within the SARS annual and lifetime limits.
TFSA rules in South Africa
- Annual limit: R46 000 per tax year (from 1 March 2026, up from R36 000).
- Lifetime limit: R500 000 in contributions. Growth above that is fine and stays tax-free.
- Penalty: SARS taxes contributions over the limits at 40%.
- Withdrawals are tax-free, but you can't "top up" what you took out. Withdrawn amounts still count towards your limits.
Because the lifetime limit counts contributions, a long time horizon matters most. Choosing a low-cost equity ETF inside your TFSA instead of a cash account lets the tax-free growth compound.
How the calculator works
Your expected annual return is converted to a monthly rate, and each month your contribution is added and the balance grows. Contributions stop automatically once you reach R46 000 in a tax year or R500 000 over your lifetime, but the balance keeps growing tax-free.
Worked example: R3 000 a month for 25 years
- R3 000 a month is R36 000 a year, under the R46 000 annual limit.
- At a 10% annual return, you reach the R500 000 lifetime limit in year 14, and contributions stop.
- By year 25 the account is worth about R2 991 000, of which about R2 491 000 is tax-free growth.
Want to compare with a taxable investment or add yearly increases? Try the compound interest calculator.
Frequently asked questions
How long does it take to max out a TFSA?
Contributing the full R46 000 a year, you reach the R500 000 lifetime limit in just under 11 years.
Can I have more than one TFSA?
Yes, but the limits apply across all your accounts combined, so track your total contributions.
What happens if I contribute more than the limit?
SARS charges a 40% penalty tax on the amount over the annual or lifetime limit. The calculator caps contributions at the limits for you.
Is a TFSA better than a retirement annuity?
Neither is better for everyone. A TFSA gives you flexible, tax-free growth; an RA gives you a tax deduction now. See how much an RA saves you with the retirement annuity calculator.