Tax-Free Savings Calculator (2026/27): How Much Your TFSA Could Grow

By Finance Guide Editors Updated October 2026 · 5 sources · 3 min read

Prices and facts checked 17 October 2026. We don't accept payment for rankings.

Short answer: R1,000 a month in a tax-free savings account (TFSA) earning 9% a year (8.5% after a 0.5% fee) could grow to about R188,000 after 10 years. You'd have put in R120,000, and all the growth is tax-free. You can contribute up to R46,000 a year and R500,000 in your lifetime. Anything above those limits is taxed at 40% (SARS tax-free investments).

Tax-free savings calculator

How it works: it adds your monthly contributions, caps them at R46,000 per tax year and R500,000 in total, and compounds growth monthly at your return minus fees. Real returns go up and down from year to year.

The rules behind the numbers

According to SARS:

• R46,000 a year from the 2027 tax year, which started on 1 March 2026. Unused allowance doesn't carry over.
• R500,000 lifetime, across all your TFSAs.
• 40% penalty on anything over either limit.
• Withdrawals can't be replaced. Putting money back counts as a new contribution.
• Growth doesn't count towards the limits, so your balance can grow far beyond R500,000.

The R46,000 limit is confirmed in National Treasury's Budget 2026 tax guide.

Worked examples

Each assumes 9% a year before fees and 0.5% fees (8.5% net), compounded monthly. We calculated these with the method above.

Cash vs investments: at a bank TFSA paying 6.5% with no fees, R1,000 a month for 5 years grows to about R70,700. That's safer, but over long periods investment funds have usually grown more, though with ups and downs. For example, Discovery Bank advertised 6.5% on its TFSA in January 2026 (Discovery Bank).

Why fees matter so much

A 0.5% difference in yearly fees compounds over decades. On R3,833 a month for 20 years, the gap between 0.3% and 0.8% in fees is about R134,000 (on 9% returns before fees, by our calculation). Compare providers in our best tax-free savings accounts guide. For example, the 10X Your Future Fund has an all-in charge (TIC) of 0.65% a year (10X MDD, May 2026).

Tips to get the most from your TFSA

1. Start early. Time does most of the work: compare the R500 and R1,000 rows above.
2. Use the full allowance before 28 February each year if you can. Unused space is gone for good.
3. Don't withdraw. You can't replace what you take out.
4. Check your total across providers. You can open as many TFSAs as you like, but the same limits apply across all of them (10X TFSA FAQ).
5. Open one for your children. They have their own limits.

FAQ

How much can I put in a tax-free savings account per year?

R46,000 per tax year from 1 March 2026, and R500,000 in your lifetime.

What happens if I go over the TFSA limit?

SARS charges 40% tax on the amount over the limit.

Does growth count towards the R500,000 limit?

No. Only your contributions count. Growth and reinvested returns inside the account don't.

How long does it take to reach the R500,000 limit?

At the full R46,000 a year, just under 11 years.

Is a TFSA better than a retirement annuity?

They do different jobs. An RA gives you a tax deduction now. A TFSA gives tax-free growth and access to your money. See our RA vs TFSA guide.

Changelog: 17 Oct 2026, first published with the R46,000 annual limit.