FHSA Calculator
The First Home Savings Account is deductible going in and tax-free coming out. See what your down payment can grow to, and what it really costs once the refunds are counted.
Not sure of your marginal rate? The income tax calculator shows it for your income and province.
Year by year
| Year | Contribution | Refund | Balance at year end |
|---|
How the calculator works
Each year the calculator contributes your planned amount at the start of the year, limited by the room you have: $8,000 a year plus any unused room carried forward (up to $8,000), and never more than the $40,000 lifetime limit. The balance then grows at your return, untaxed. Every contribution is deductible, so it generates a refund at your marginal tax rate, and the cost of the down payment is what you put in minus those refunds.
On the default numbers, $8,000 a year for 5 years at 5% builds $46,415.30 from $40,000 of contributions. At a 40% marginal rate, the $16,000 of refunds means the $46,415.30 cost you $24,000.
The rules the calculator follows
| Rule | Figure |
|---|---|
| Annual participation room | $8,000 a year, starting the year you open your first FHSA |
| Lifetime limit | $40,000 |
| Carry-forward of unused room | Up to $8,000, so at most $16,000 in one year |
| Longest the account can stay open | 15 years from opening, or until the year you turn 71, whichever is first |
| Penalty for over-contributing | 1% a month on the highest excess amount |
Why the real cost matters
The balance is only half the story. Because every contribution is deductible, the FHSA behaves like a down payment that is partly paid for by the government: at a 40% rate, each $8,000 contribution comes back as $3,200 in tax savings. If you save the refund too, by putting it toward the next contribution or a mortgage prepayment, the effect compounds. The calculator treats it as spent, which keeps the number honest.
Planning around the limits
- Open it early, even with a small amount. Room starts to accumulate the year you open the account, so opening it early keeps your carry-forward growing.
- The carry-forward is capped. If you skip a year, you can add the missed $8,000 to the next year, but not more. Missing two years in a row loses the room from the first.
- Pair it with the RRSP. You can use an RRSP and an FHSA together. See the RRSP vs TFSA calculator for how the deduction compares with tax-free growth.
To see how much house your savings and income support, try the mortgage affordability calculator, and for the other costs of buying, the CMHC insurance and land transfer tax calculators.