FHSA Calculator Canada

What the FHSA calculator does

The First Home Savings Account is one of the most useful tools for Canadians saving for a first home. The calculator projects how your account could grow over the years you contribute and works out the tax value of the deduction you earn along the way, so you see both the compounding and the refund that helps pay for it.

How the FHSA works

Like an RRSP, FHSA contributions are tax-deductible, so they lower the income you pay tax on. Like a TFSA, a qualifying withdrawal to buy or build a first home is completely tax-free, growth included. Two limits apply:

• The annual limit of $8,000, with up to $8,000 of unused room carried forward to the next year.
• The lifetime limit of $40,000 across all your FHSA years.

Once your running total reaches the lifetime limit, the calculator stops adding contributions.

A worked example

You contribute $8,000 a year for five years at an expected return of 5%. That fills the $40,000 lifetime limit, and the balance grows to about $44,205, so about $4,205 is sheltered growth. At a 30% marginal rate, the deductions are worth about $12,000 in reduced tax over those years. Reinvesting each refund, within your limits or in a TFSA, lets the deduction help fund the down payment too.

Projecting the growth

The calculator compounds each year’s contribution at the expected return you enter. Because investment income inside the account is sheltered, no tax is deducted on interest, dividends or gains, and over several years that adds a meaningful amount on top of what you put in.

The tax deduction

The saving equals your contributions times your marginal tax rate, the rate on your top dollar of income. A higher earner gets a larger refund for the same contribution. You do not have to claim the deduction in the year you contribute: if you expect a higher income later, carrying it forward can be worth more.

How your province affects the benefit

The FHSA limits are federal and the same everywhere, but the deduction is worth your contributions times your combined federal and provincial marginal rate, so the same contribution produces a larger refund in a higher-rate province. Quebec residents claim the deduction on both the federal return and their Revenu Québec return. A qualifying withdrawal is tax-free in every province and territory. Several provinces also have first-time buyer programs, such as land transfer tax rebates, that sit alongside the FHSA.

Reading the projection sensibly

The expected return is an assumption, and real markets move unevenly. Try a cautious return as well as an optimistic one, and remember that in the early years your contributions matter more than the return. Treat the growth figure as one plausible path and the tax saving as the more certain benefit.

Common mistakes and planning tips

Contributing beyond your available room brings a monthly penalty tax on the excess, so track the annual and lifetime limits. Waiting to open the account costs you, because room only starts accumulating once the account is open. Claiming the deduction in a low-income year can waste part of its value. Contributions and the deduction are reported on Schedule 15 and line 20805 of the T1, and a qualifying withdrawal is requested from your financial institution on the CRA’s form. You can combine the FHSA with the RRSP Home Buyers’ Plan on the same purchase.

When to use it

• Before opening an account, to see the combined value of tax-free growth and a deductible contribution.
• At contribution time, to check you are within the limits.
• When planning a down payment, to set a yearly target.
• When comparing the FHSA with a TFSA or RRSP for first-home savings.

Limitations

The projection depends on the return you assume and the marginal rate you enter. The limits are maintained figures, but your eligibility and available room depend on your own history, which your financial institution can confirm. The tax-free withdrawal applies only to a qualifying first-home purchase.

This information is general in nature and is not financial advice.

About This FHSA Calculator

Use this FHSA calculator to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.