Tax-Free Account Growth Calculator
Compare tax-free account growth versus taxable investment returns over time based on contribution limits and expected returns.
Tax-Free vs Taxable Comparison
Tax-free accounts (Roth IRA, TFSA, ISA) let your investments grow and be withdrawn tax-free, while taxable accounts reduce your returns by your tax rate.
Tax-Free Balance = Contribution × ((1 + Return)^Years - 1) / Return
Taxable Balance = Contribution × ((1 + After-Tax Return)^Years - 1) / After-Tax Return
After-Tax Return = Return × (1 - Tax Rate)
Common tax-free account limits (2025):
- Roth IRA (US): $7,000/year ($8,000 if 50+)
- TFSA (Canada): $7,000 CAD/year
- ISA (UK): £20,000/year
The tax-free advantage grows exponentially — the longer you invest, the bigger the difference. Over 30 years, tax-free growth can result in 30-50% more wealth than taxable accounts at the same contribution level.