If You Invest $10,000 Today in a TFSA, How Many Times Will It Double in 40 Years?
Imagine putting away just $10,000 in your Tax-Free Savings Account (TFSA) and not touching it for the next 40 years. Sounds simple, right?
Now, here’s the curious part: How many times would that money double? And how much could it grow into? Let’s break it down in a way that’s easy to follow—and a little mind-blowing.
The Magic of Doubling: The Rule of 72
To estimate how often money doubles, there’s a classic trick called the Rule of 72. Here’s how it works:
Doubling Time=72/Annual Return (%)
Let’s assume you invest in something that gives you a 12% annual return (like high-quality tech stocks or a strong growth ETF). Plug that in: 72/12= 6. So it will double every 6 years.
How Many Doublings in 40 Years?
Now let’s see how many 6-year periods fit into 40 years: 40/6 = 6.67 times. That means your $10,000 will double 6 full times, and then a bit more after that.
Year-by-Year Doubling Table
| Time Passed | Value of Your Investment |
|---|---|
| 0 years | $10,000 |
| 6 years | $20,000 |
| 12 years | $40,000 |
| 18 years | $80,000 |
| 24 years | $160,000 |
| 30 years | $320,000 |
| 36 years | $640,000 |
| 40 years | ~$930,000 |
So even without hitting that 7th full double, your money grows to nearly $1 million — and here’s the best part: It’s tax-free inside a TFSA.
What About Inflation?
Let’s be realistic — prices go up over time. If we adjust for 2% inflation, your real return drops to around 9.8%.
Using the same logic:
- Doubling time becomes ~7.35 years
- You get around 5.4 doublings in 40 years
- Your $10,000 becomes about $574,000 in today’s dollars
Still very impressive. Still tax-free. Still worth doing.
So, What Should You Do With Your TFSA?
So, if you have TFSA contribution room of $10,000, don’t let it sit idle.
Put it into a high-quality ETF (like a tech growth ETF or the S&P 500) or a stock you truly believe in for the long term. The goal isn’t to chase quick wins — it’s to let compounding quietly work in your favour.
Over the decades, you’ll be amazed at the transformation of your investment. It’s not luck. It’s just math, time, and patience.
Curious Takeaway: It’s not about how much you invest—it’s about how long you let it grow.” The earlier you start, the more the curve bends in your favour. Your $10,000 today could quietly turn into freedom tomorrow.
