Investment Calculator Canada
Estimate compound growth from an initial investment, monthly contributions, annual return assumptions, and a savings timeline in Canadian dollars.
Starting amount to invest
Amount added each month
Assumed annual return percentage
Number of years
7% is an illustrative assumption, not a forecast. Returns can be negative and vary over time.
How compound interest works
Compound interest grows your investment exponentially by earning returns on both your principal and past returns. The longer you invest, the more powerful compounding becomes.
Account treatment differs: TFSA growth and withdrawals are generally tax-free, while RRSP growth is tax-deferred and withdrawals are generally taxable.
Frequently asked questions
- What return rate should I use?
- There is no guaranteed rate. Test several nominal assumptions and compare the range rather than treating one result as a forecast.
- Does this include inflation?
- No. Results are nominal. Test a lower annual return assumption to explore reduced purchasing-power growth.
- What about taxes on gains?
- TFSA growth and withdrawals are generally tax-free. RRSP growth is tax-deferred, but withdrawals are generally taxable.
- How is annual return applied?
- This model converts the annual return assumption into an equivalent monthly growth rate and applies monthly contributions.
Long-term planning
Investment calculator Canada for compound growth
Model how an initial investment, monthly contributions, annual return assumptions, and time horizon can compound in Canadian dollars while staying connected to budget and savings planning.
Popular planning scenarios
- Monthly investing after emergency savings are funded
- Down payment savings versus long-term investing
- TFSA or RRSP contribution timeline planning
- Retirement projection from a fixed monthly contribution
Methodology note
The projection converts the annual return assumption into an equivalent monthly growth rate and applies recurring monthly contributions through the selected timeline. It does not account for market volatility, account contribution limits, fees, taxes, inflation, or the difference between TFSA, RRSP, RESP, and taxable accounts.
Related Canadian planning tools
Quick answers
- Does this predict market returns?
- No. It illustrates compound growth from your assumptions; actual returns can vary widely from year to year.
- Should I invest before saving cash?
- Many households prioritize emergency savings first, especially when rent, debt, or job stability make cash reserves important.
What affects this projection
The projection uses only your amounts, annual return assumption, timeline, and an equivalent monthly growth rate.