🏡 FHSA Calculator: Plan Your First Home Savings Smartly

Buying your first home in Canada is a big milestone — but it often comes with financial challenges. That’s where the FHSA Calculator (First Home Savings Account Calculator) comes in handy. This tool helps you estimate how much you can contribute, how your savings will grow, and how much tax advantage you can get from using an FHSA.

What is an FHSA?

The First Home Savings Account (FHSA) is a registered account in Canada that allows first-time homebuyers to save up to $8,000 per year and $40,000 lifetime. Contributions are tax-deductible, and withdrawals for a qualifying first home purchase are tax-free — making it a powerful tool to boost your down payment.

How FHSA Contributions Work

• You can contribute up to $8,000 per year.

• Any unused contribution room can carry forward to the next year (up to $8,000).

• The lifetime maximum is $40,000.

• Contributions give you a tax deduction, similar to an RRSP.

• Withdrawals for a qualifying home are tax-free.

Example of Contribution Calculation

• If you contribute $5,000 in 2025, you will carry forward $3,000 of unused room into 2026.

• In 2026, your contribution limit will be:

  • $8,000 (new annual limit)

  • • $3,000 (unused from 2025)

  • = $11,000 contribution room available.

This means even if you don’t maximize your FHSA each year, you can catch up later.

Why Use an FHSA Calculator?

A FHSA Calculator helps you:

• 📊 Estimate your savings growth over time.

• 💰 Calculate annual and lifetime contribution limits.

• 🏦 Understand tax benefits from contributions.

• 🏠 Plan how fast you can reach your down payment goal.

How the Calculator Works

Simply enter:

• Your annual contribution amount

• Number of years you plan to save

• Expected investment return (interest or growth rate)

The calculator will show you:
✅ Total contributions
✅ Investment growth
✅ Tax savings
✅ Final balance available for your first home

Benefits of Using the FHSA Calculator

• Helps you maximize tax deductions while saving.

• Shows a clear savings timeline toward your home goal.

• Allows you to compare scenarios — for example, saving $5,000 vs $8,000 per year.

If you’re planning to buy your first home in Canada, the FHSA Calculator is an essential tool to map out your savings strategy. By understanding how your contributions and tax benefits add up, you can make smarter decisions and achieve your dream home faster.