Canadian FHSA Calculator — First Home Savings Account
Project your First Home Savings Account balance at purchase, calculate tax deduction savings, and see your tax-free withdrawal amount. Includes FHSA + HBP combination strategy and investment type comparison. All figures in CAD.
The FHSA is described as having the best of both RRSP and TFSA: contributions are tax-deductible (like RRSP), and qualifying withdrawals are completely tax-free (like TFSA). This "double tax benefit" makes it the most powerful first-home savings tool in Canadian history.
| Feature | FHSA | RRSP (HBP) | TFSA |
|---|---|---|---|
| Contribution deductible? | Yes | Yes | No |
| Withdrawal tax-free (first home)? | Yes — no repayment | Yes — must repay over 15 yrs | Yes — anytime |
| Annual limit | $8,000 | 18% of earned income | $7,000 (2024) |
| Lifetime limit | $40,000 | Unlimited (via HBP: $60K) | No lifetime cap (room cumulative) |
| Must repay withdrawal? | No | Yes — over 15 years | No |
Since 2023, you can use both the FHSA and the RRSP Home Buyers' Plan (HBP) for the same home purchase. This gives a couple combined access to up to $200,000 in tax-advantaged savings ($40K FHSA + $60K HBP per person × 2).
How to Use This Calculator
Enter your current FHSA balance (0 if new), annual contribution (max $8,000), years until purchase, combined marginal tax rate, and expected annual return. The calculator projects your FHSA balance at purchase, total tax deduction savings, and tax-free withdrawal amount — showing why the FHSA is the most powerful first-home savings tool in Canada.
What Is the FHSA?
The First Home Savings Account (FHSA) was introduced by the Canadian federal government in 2023. It combines the best features of an RRSP and TFSA: contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home purchase are completely tax-free like a TFSA. The annual contribution limit is $8,000, with a $40,000 lifetime maximum.
FHSA Eligibility
You must be a Canadian resident, at least 18 years old, and a first-time home buyer (you or your spouse have not owned a home you lived in during the current year or preceding four calendar years). The FHSA must be used within 15 years of opening or by age 71. If unused, funds transfer to your RRSP or RRIF without affecting your RRSP contribution room.
FHSA Calculation Formula
Lifetime Limit: $40,000
Tax Savings = Annual Contribution × Marginal Tax Rate
Projected Balance = FV of contributions growing at return rate
(annually compounded, contributions at start of year)
Example: 5 years, $8,000/yr, 5% return, 40% tax rate
Total Contributions: $40,000 (lifetime max reached)
Total Tax Deduction Savings: $40,000 × 40% = $16,000
Investment Growth: ~$8,600
Total Balance: ~$48,600 — 100% tax-free
Net Cost After Tax Refunds: $40,000 - $16,000 = $24,000
You receive ~$48,600 for an effective net cost of $24,000
Example: FHSA + HBP Combination Strategy
Priya and Raj — Buying in Toronto, Budget $850,000
| Priya FHSA (5 years, max contributions) | $48,600 (projected, tax-free) |
| Raj FHSA (5 years, max contributions) | $48,600 (projected, tax-free) |
| Priya HBP (RRSP withdrawal) | $60,000 (must repay $4,000/yr) |
| Raj HBP (RRSP withdrawal) | $45,000 (must repay $3,000/yr) |
| Total Down Payment Available | $202,200 |
| Combined Tax Deduction Savings (FHSA) | ~$32,000 (at 40% combined rate) |
| Effective Down Payment Cost (after refunds) | ~$170,200 |
By using both the FHSA and HBP, Priya and Raj access over $200,000 in tax-advantaged funds. Their combined FHSA deductions alone save them approximately $32,000 in taxes over 5 years — equivalent to nearly a full year of contributions returned by the CRA.