TFSA vs Taxable Investment Calculator
See the real cost of Capital Gains Tax and Dividend Withholding Tax over decades. Prove to yourself why maxing your TFSA is priority number one.
Investment Parameters
TFSA capped at R46,000/year (R500,000 lifetime). Excess goes to the taxable account. Dividend Withholding Tax: 20%. CGT calculated at exit using 40% inclusion rate.
Tax Cost Over 20 Years
R-31 388
This is how much more you'd have by using a TFSA vs a regular taxable account — the combined cost of Dividend Withholding Tax and Capital Gains Tax.
After 20 Years
TFSA (Tax-Free)
ContributedR500 000
Final ValueR1 954 757
Tax PaidR0
Taxable Account
ContributedR720 000
Pre-Tax ValueR2 159 709
CGT on Exit-R173 564
After-Tax ValueR1 986 145
Growth Over Time
| Year | TFSA Value | Taxable Value | Tax Drag |
|---|---|---|---|
| 5 | R241 762 | R238 972 | R2 790 |
| 10 | R631 122 | R616 892 | R14 230 |
| 15 | R1 213 750 | R1 214 549 | R-799 |
| 20 | R1 954 757 | R2 159 709 | R-204 952 |
Tax drag shows the cumulative difference between TFSA and taxable accounts, primarily driven by annually reinvested dividend tax. CGT on exit not included in yearly figures.