Calculator

TFSA Growth Calculator

Project your South African Tax-Free Savings Account against the R36,000 annual and R500,000 lifetime caps, and see exactly what you'd save in tax compared to an equivalent taxable account.

Updated 11 May 2026 • By Sipho Dlamini • Fact-checked

TFSA Projection

Section 12T · 2026/27 caps

Monthly contribution R3 000 (R36 000/yr)

Annual cap is R36 000 (R3 000/month).

Already contributed (lifetime) R0

Years to project 20 years

Real return / year

Your marginal tax rate (%)

TFSA value after 20 years

R1 131 545

Today's rand · contributed R500 000

Same money in a taxed account

R842 708

Tax saved by using a TFSA

R288 838

You'll hit the lifetime cap in year 14

Contributions stop there; the pot continues to grow tax-free.

Real (after-inflation) return assumed. Comparison "taxed account" applies your marginal rate to all growth annually — equivalent to a unit trust held outside the TFSA wrapper.

Year-by-year projection

Year	Total contributed	TFSA value	Taxed equivalent	Tax saved
1	R36 000	R38 160	R37 382	R778
2	R72 000	R78 610	R76 200	R2 409
3	R108 000	R121 486	R116 509	R4 977
4	R144 000	R166 935	R158 365	R8 570
5	R180 000	R215 111	R201 829	R13 283
6	R216 000	R266 178	R246 961	R19 217
7	R252 000	R320 309	R293 827	R26 482
8	R288 000	R377 687	R342 492	R35 195
9	R324 000	R438 509	R393 027	R45 482
10	R360 000	R502 979	R445 501	R57 478
11	R396 000	R571 318	R499 991	R71 327
12	R432 000	R643 757	R556 573	R87 184
13	R468 000	R720 542	R615 328	R105 215
14	R500 000	R797 695	R672 185	R125 510
15	R500 000	R845 557	R697 997	R147 560
16	R500 000	R896 290	R724 800	R171 490
17	R500 000	R950 067	R752 632	R197 435
18	R500 000	R1 007 071	R781 533	R225 538
19	R500 000	R1 067 496	R811 544	R255 951
20	R500 000	R1 131 545	R842 708	R288 838

TFSA rules in plain English

· Maximum R36 000 per tax year, R500 000 over your lifetime.
· Over-contribution penalty: 40% of the excess (paid to SARS, ouch).
· No tax on dividends, interest or capital gains inside the TFSA — ever.
· Withdrawals are fully tax-free but don't reset your lifetime cap.
· You can hold cash, bonds, unit trusts, ETFs or shares (subject to provider).
· Each person can have unlimited TFSAs but caps apply across all of them combined.

The R3,000/month sweet spot

R3,000/month = R36,000/year, which exactly uses up your annual cap. At this rate you'll fill the R500,000 lifetime cap in ~14 years. Anything less leaves contribution room on the table; anything more triggers a 40% penalty.

Frequently asked questions

How much can I contribute to a TFSA in 2026/27?+

Up to R36 000 per tax year and R500 000 over your lifetime. Both caps have stayed flat since the 2020/21 tax year — the legislation is overdue for an inflation adjustment but Treasury hasn't made the move yet.

What happens if I contribute more than R36,000 in a year?+

You pay a 40% penalty on the excess to SARS, on top of any growth on that excess being potentially taxable. There's no benefit to over-contributing — the tax authority gets all of it.

Can I withdraw from a TFSA?+

Yes, any time. But withdrawals don't reset your lifetime cap — if you contribute R100,000 then withdraw it, you can only contribute another R400,000 over your lifetime. Treat the TFSA as a one-way ratchet.

Is a TFSA better than a retirement annuity?+

Different tools for different jobs. RAs give you immediate tax relief on contributions (up to 27.5%/R350k) but you can't access until 55 and 33% is taxed on withdrawal. TFSAs give you no contribution-time tax break, but the growth and withdrawals are tax-free forever. Most people should use both — RAs first for the immediate tax break, then top up with a TFSA.

What can I hold in a TFSA?+

A TFSA is just a tax wrapper — you can hold cash deposits, RSA Retail Bonds, unit trusts, ETFs and certain shares. For long horizons (10+ years), equity ETFs typically outperform cash deposits by a wide margin. Pick the provider whose product range matches your goals: EasyEquities for shares/ETFs, TymeBank/Capitec for cash.

Can I have multiple TFSAs?+

Yes, but the combined annual R36k and lifetime R500k caps still apply across all accounts. Most people hold one at a single provider for simplicity.

More tools

All free calculators

Pick a provider

Best TFSA platforms

Retirement calculator