Estimate how your First Home Savings Account will grow over time. Enter your current balance, annual contribution, expected return, and time horizon. The calculator respects the $8,000 annual limit and $40,000 lifetime contribution cap automatically.
For the rules behind the projection, read this with the main FHSA guide, the provider comparison in best FHSA accounts, and the priority framework in FHSA vs TFSA vs RRSP. If you are deciding how to combine the account with other down-payment tools, pair it with FHSA and RRSP HBP at the same time and FHSA withdrawal rules.
How the FHSA calculator works
This calculator uses monthly compounding to project your FHSA growth. Contributions are distributed evenly across 12 months and capped at the $8,000 annual limit and $40,000 lifetime maximum. Once you reach the lifetime cap, additional contributions stop automatically in the projection.
The estimated tax savings represents the cumulative tax deduction value of your FHSA contributions at your marginal tax rate — similar to how RRSP deductions work.
FHSA contribution limits
| Year | Annual Limit | Lifetime Limit | Max Carry-Forward |
|---|---|---|---|
| 2023 | $8,000 | $40,000 | — (first year) |
| 2024 | $8,000 | $40,000 | $8,000 |
| 2025 | $8,000 | $40,000 | $8,000 |
| 2026 | $8,000 | $40,000 | $8,000 |
Carry-forward rule: If you contribute less than $8,000 in a year, the unused room carries forward to the next year (up to a maximum of $8,000 in carry-forward). For example, if you contribute $5,000 in 2025, you can contribute up to $11,000 in 2026 ($8,000 annual + $3,000 carry-forward).
FHSA vs RRSP vs TFSA for home buyers
| Feature | FHSA | RRSP (HBP) | TFSA |
|---|---|---|---|
| Tax deduction | Yes | Yes | No |
| Tax-free growth | Yes | Tax-deferred | Yes |
| Tax-free withdrawal | Yes (home purchase) | No (must repay over 15 years) | Yes (any purpose) |
| Annual limit | $8,000 | 18% of income (max $32,490) | $7,000 |
| Lifetime limit | $40,000 | No lifetime cap | No lifetime cap |
| Repayment required | No | Yes (15 years) | No |
| Must be first-time buyer | Yes | Yes (for HBP) | No |
| Maximum withdrawal | $40,000 + growth | $60,000 | Unlimited |
The FHSA combines the best features of both: tax-deductible contributions (like RRSP) and tax-free withdrawals (like TFSA). This makes it the most tax-efficient vehicle for first-time home buyers.
FHSA tax deduction
FHSA contributions reduce your taxable income, just like RRSP contributions. The tax savings depend on your marginal tax rate:
| Annual Contribution | Tax Savings at 30% | Tax Savings at 40% | Tax Savings at 50% |
|---|---|---|---|
| $4,000 | $1,200 | $1,600 | $2,000 |
| $8,000 | $2,400 | $3,200 | $4,000 |
| $40,000 (lifetime) | $12,000 | $16,000 | $20,000 |
Over the full $40,000 lifetime contribution, a person at a 40% marginal rate saves $16,000 in taxes — money that can be put toward closing costs, furnishing, or other home expenses.
Maximizing your FHSA
Open the account as early as possible
FHSA contribution room only begins accumulating once the account is opened. Even if you are not ready to contribute, opening the account starts the clock and allows carry-forward room to build.
Combine FHSA + HBP for maximum benefit
A qualifying couple can access up to $200,000 in tax-advantaged home-buying funds:
- 2 × $40,000 FHSA + investment growth = ~$100,000+
- 2 × $60,000 HBP from RRSPs = $120,000
Transfer unused FHSA to RRSP
If your home-buying plans change, you can transfer your FHSA balance to your RRSP or RRIF without affecting your RRSP contribution room. This makes the FHSA a risk-free savings vehicle — if you buy a home, great; if not, the money goes to retirement tax-deferred.
FHSA qualifying withdrawal rules
To make a tax-free withdrawal from your FHSA for a home purchase:
- You must have a written agreement to buy or build a qualifying home
- You must be a first-time home buyer at the time of withdrawal
- The home must be in Canada
- You must intend to live in the home as your principal residence within one year of purchase
- You must be a Canadian resident at the time of withdrawal
The entire balance (contributions + investment growth) can be withdrawn tax-free for a qualifying purchase.
FHSA investment strategies
Since the FHSA has a shorter time horizon than retirement accounts (typically 3–10 years), your investment strategy should balance growth with capital preservation:
- 1–3 years to purchase: High-interest savings account or short-term GICs
- 3–5 years: Balanced portfolio (60% equity, 40% fixed income)
- 5–10 years: Growth-oriented portfolio (80%+ equity ETFs)
- 10+ years: If you are uncertain about timing, a diversified all-equity ETF like XEQT provides maximum long-term growth
Related calculators
- RRSP Calculator — Project retirement savings with tax-deductible contributions
- TFSA Calculator — Estimate tax-free investment growth
- Mortgage Calculator — Calculate your future mortgage payments
- Mortgage Affordability Calculator — See how much home you can afford
- Income to Afford Home Calculator — Determine the income needed for your target home price
- Mortgage Down Payment Calculator — Calculate minimum down payment requirements
- Land Transfer Tax Calculator — Estimate closing costs by province
- Income Tax Calculator — Find your marginal tax rate for FHSA deductions
Open an FHSA and start saving for your first home
The sooner you start contributing to your FHSA, the more tax-free growth you can accumulate toward your down payment. You can invest commission-free and get a $25 bonus when you open an account. Follow our step-by-step guide to get started.