Investment Calculator

How to use this investment calculator

Pick what you want to find in the tabs at the top, fill in the other values and press Calculate. The results show the answer, a breakdown of your end balance, a year-by-year chart and a full schedule.

• End Amount: how much your investment will be worth after a number of years.
• Contribution: how much you need to add each month or each year to reach a target.
• Return Rate: the yearly return you would need to reach a target.
• Starting Amount: the lump sum you need today to reach a target.
• Investment Length: how long it will take to reach a target.

The settings, explained

• Starting amount: the money you invest at the start, such as an existing TFSA or RRSP balance.
• Return rate: the average yearly return you expect. GICs and high-interest savings pay a set rate; a balanced or growth portfolio’s return varies from year to year, so use a conservative long-term average.
• Compounding: how often interest is added to your balance. GICs often compound yearly, and savings accounts often compound monthly. The more often interest compounds, the faster your money grows.
• Additional contribution: the amount you add each month or each year, such as an automatic TFSA or RRSP deposit. Contributions made at the beginning of each period earn a little more interest than those made at the end.

Worked examples

• Growing a TFSA: you start with $20,000 and add $1,000 at the end of each month for 10 years at 6% a year, compounded yearly. You would have about $198,290: $20,000 you started with, $120,000 in contributions and about $58,290 in growth.
• Saving for a goal: you want $100,000 for a home down payment in 7 years and have $10,000 today. At 5% a year, the Contribution tab shows how much you need to add each month.
• Checking a target return: you plan to invest $500 a month for 25 years and want $400,000 at retirement. The Return Rate tab shows the yearly return that would take.

Why starting early matters

Compound growth means you earn returns on your past returns, not only on the money you put in. Put $1,000 in an account that earns 5% a year and it grows to $1,050 after one year. In the second year you earn 5% on $1,050, so you finish with $1,102.50. Over 20 or 30 years, that effect is what turns steady saving into real wealth.

Time is the biggest lever. Someone who saves $300 a month from age 25 to 65 at 6% ends up with roughly twice as much as someone who saves $600 a month from 45 to 65, even though both put in about the same total. Try it in the calculator above.

Where this helps with your planning

• Seeing how regular contributions to an RRSP, TFSA, FHSA or RESP could add up over time.
• Comparing GIC rates with different compounding frequencies.
• Working out how much to save each month for retirement, a home or your children’s education.
• Checking whether your current savings plan is on track to reach your goal.

Frequently asked questions