About the Canada FHSA Calculator
This FHSA calculator projects how a First Home Savings Account can grow toward a down payment. Enter what you have already contributed, any unused room carried forward, how much you plan to put in each year, your expected return and your marginal tax rate, and it shows your balance in the year you plan to buy, the tax refunds your deductions generate, and how your participation room changes year by year.
The FHSA combines the best of the RRSP and TFSA for first-time buyers: contributions are tax-deductible like an RRSP, and a qualifying withdrawal to buy your first home is tax-free like a TFSA. The Canada Revenue Agency sets participation room at $8,000 a year, with a $40,000 lifetime limit. Up to $8,000 of unused room carries forward to the next year, so the most you can contribute in a single year is $16,000 — but room only starts to accrue once you open your first FHSA.
The account can stay open until the earliest of the 15th anniversary of opening your first FHSA, the end of the year you turn 71, or the end of the year after your first qualifying withdrawal, so the projection is limited to 15 years. Unused savings can be transferred to an RRSP or RRIF tax-free without using RRSP room. The refund estimate assumes you deduct each contribution in the year you make it at your current marginal rate.
With the default inputs, the fhsa balance when you buy is $46,415.30. Change any value above to recalculate instantly.
How to use the canada fhsa calculator
- 1Enter your current FHSA balance and total contributions to date (0 if you are just opening one).
- 2Enter unused room carried forward from last year, if any.
- 3Enter how much you plan to contribute each year and how many years until you buy.
- 4Set your expected return and marginal tax rate.
- 5Review the balance, refunds and the year-by-year room table.
Formula and method
Each year your FHSA participation room is $8,000 plus any carryforward, but never more than what is left of the $40,000 lifetime limit. The carryforward into the next year is the unused part of this year’s room, capped at $8,000. The calculator contributes your planned amount (or the room, if smaller) at the start of each year and grows the balance at the expected return.
Tax refunds are estimated as each year’s contribution × your marginal tax rate, assuming you claim the deduction in the same year. You may instead carry deductions forward to a higher-income year. The projection ignores transfers in from an RRSP (which use FHSA room but give no new deduction) and assumes the account stays within its 15-year maximum participation period.
- C
- Contribution in the year (planned amount, capped at room)
- r
- Expected annual return
- carryforward
- Unused room from last year, up to $8,000
Worked examples
Max out from the first year, buy in 5 years
Contributing $8,000 at the start of each year for five years uses the full $40,000 limit. At 5% the account grows to about $46,415, and deducting the contributions at a 30% marginal rate returns about $12,000 in tax refunds.
Using $8,000 of carryforward
With $8,000 already contributed and $8,000 carried forward, this year’s room is $16,000. Contributions of $16,000, then $8,000 and $8,000 hit the $40,000 cap in year 3. The balance reaches about $49,321 after four years at 6%, with $12,800 of refunds at a 40% rate.
$5,000 a year for 10 years
At $5,000 a year the unused $3,000 of each year’s room carries forward, but the $40,000 lifetime limit is reached after 8 years. The money keeps growing tax-free for two more years, reaching about $55,271.
Frequently asked questions
What is the FHSA contribution limit?+
You get $8,000 of FHSA participation room per year, starting in the year you open your first FHSA, up to a lifetime limit of $40,000. Up to $8,000 of unused room carries forward, so you can contribute at most $16,000 in one year.
Do FHSA contributions give a tax refund?+
Yes. Contributions are deductible from your income like RRSP contributions, so they reduce your tax at your marginal rate. You can also carry the deduction forward to a future year when your income is higher.
Is the FHSA withdrawal taxable?+
A qualifying withdrawal to buy your first home is tax-free. Withdrawals for any other purpose are added to your taxable income, unless you transfer the money directly to an RRSP or RRIF.
How long can I keep an FHSA open?+
Until the earliest of the 15th anniversary of opening your first FHSA, the end of the year you turn 71, or the end of the year after your first qualifying withdrawal. Close or transfer the account by then to avoid tax.
Can I use the FHSA and the Home Buyers’ Plan together?+
Yes. You can make a qualifying FHSA withdrawal and an RRSP Home Buyers’ Plan withdrawal for the same home, which lets couples combine both for a larger down payment.
What happens if I over-contribute to my FHSA?+
The CRA charges a 1% tax per month on the highest excess FHSA amount in that month until it is removed or new room becomes available on 1 January.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.
Sources
- Canada Revenue Agency — Participating in your FHSAs (room, $40,000 limit, carryforward)
- Canada Revenue Agency — Opening your FHSA (eligibility)
- Canada Revenue Agency — Closing your FHSAs (maximum participation period)
- Canada Revenue Agency — What happens if you contribute or transfer too much to your FHSAs
- Canada Revenue Agency — First Home Savings Account (FHSA)