Investment Returns
Calculate compound interest and see how your money grows over time.
Starting amount you want to invest
Amount you will add each month
Expected annual return percentage
Number of years to invest
How Investment Calculation Works
Our investment calculator uses compound interest, the eighth wonder of the world according to Einstein. This mathematical concept allows your money to grow exponentially over time, as you earn interest on both your initial amount and accumulated interest.
For Canadian investors, understanding the power of compound interest is essential for planning retirement, saving for a down payment, or building wealth. Even modest contributions of $100-200 per month can grow to hundreds of thousands over decades.
Frequently Asked Questions about Investing
What is compound interest?
When you earn interest on already accumulated interest, creating exponential growth over time.
What is a good annual return?
The historical stock market returns about 7-10% per year, but varies. Savings accounts pay less, around 2-5%.
How much should I invest monthly?
Rule of thumb: at least 15-20% of income for retirement. Start with what you can and increase gradually.
TFSA vs RRSP in Canada?
TFSA: tax-free growth, flexible. RRSP: tax deduction now, taxed in retirement. Both are excellent!