Compound Interest Calculator (Canada)
Enter what you have, what you add each month and the return you expect. See what it grows to, and how much of that is growth rather than your own money. It also shows how fast your money doubles, and what one small change would do.
You put in $58,000. Growth adds $67,510, or 116% on top of what you saved.
What moves the number most
Time beats everything. Compare a small change in each input against your result of $125,510.
| Change | You would have | Difference | |
|---|---|---|---|
| Return 1% higher (7.0%) | $144,573 | +$19,063 | |
| Return 1% lower (5.0%) | $109,333 | −$16,177 | |
| Add $100 more a month | $171,714 | +$46,204 | |
| 5 more years | $183,248 | +$57,738 | |
| 10 more years | $261,129 | +$135,619 |
Year by year
| Year | Added | Growth | Balance |
|---|---|---|---|
| 1 | $2,400 | $684 | $13,084 |
| 2 | $2,400 | $874 | $16,358 |
| 3 | $2,400 | $1,076 | $19,834 |
| 4 | $2,400 | $1,290 | $23,524 |
| 5 | $2,400 | $1,518 | $27,443 |
| 6 | $2,400 | $1,760 | $31,602 |
| 7 | $2,400 | $2,016 | $36,018 |
| 8 | $2,400 | $2,289 | $40,707 |
| 9 | $2,400 | $2,578 | $45,685 |
| 10 | $2,400 | $2,885 | $50,970 |
| 11 | $2,400 | $3,211 | $56,581 |
| 12 | $2,400 | $3,557 | $62,538 |
| 13 | $2,400 | $3,924 | $68,862 |
| 14 | $2,400 | $4,314 | $75,576 |
| 15 | $2,400 | $4,728 | $82,705 |
| 16 | $2,400 | $5,168 | $90,273 |
| 17 | $2,400 | $5,635 | $98,308 |
| 18 | $2,400 | $6,131 | $106,838 |
| 19 | $2,400 | $6,657 | $115,895 |
| 20 | $2,400 | $7,215 | $125,510 |
Show the math
| Rate per period | 6% ÷ 12 periods |
| Effective yearly rate | (1 + rate per period)^periods − 1 = 6.168% |
| Each month | balance × (1 + monthly equivalent rate) + contribution |
| Doubling time | ln 2 ÷ ln(1 + effective rate) = 11.58 years |
Contributions are added at the end of each month. Returns are before tax. In a TFSA or RRSP that is what you keep. In a regular account, interest is taxed each year at your marginal rate.
How this calculator works
Each month the balance grows by the month’s share of the yearly return, then your contribution is added. The yearly return is converted to a monthly rate that matches the compounding you chose. So “6% compounded monthly” and “6% compounded yearly” give slightly different results, as a bank would calculate them.
The chart separates what you put in from what growth added.
Worked example: starting early beats saving more
Two savers earn the same 6% a year, compounded monthly.
| Saves | For | Puts in | Ends with | |
|---|---|---|---|---|
| Starts at 25 | $200 a month | 40 years | $96,000 | $398,298 |
| Starts at 40 | $400 a month | 25 years | $120,000 | $277,198 |
The second saver puts in more money and still finishes behind. The first saver’s early dollars had fifteen more years to double.
Assumptions
- Contributions go in at the end of each month and the return is the same every year. Real markets vary. This models the long-run average.
- Returns are before tax and fees. Use a net-of-fee rate for investments.
- “Raise the monthly amount each year” grows the contribution once a year, like a raise you keep saving.
Common questions
Frequently asked questions
- What is compound interest?
- Interest earned on interest. In year one you earn a return on what you put in. In year two you earn a return on that plus year one's growth, and so on. Over long periods, growth on growth becomes the largest part of the balance.
- What return should I use?
- For a savings account or GIC, the rate you are offered. For investments, FP Canada's 2026 guideline is about 5% for a balanced portfolio and 6% for equities before fees. Subtract your fund's fee. Try a lower number too.
- Does the compounding frequency matter much?
- Less than people expect. At 6%, monthly compounding gives 6.17% a year versus 6.00% for annual, about $170 more on $100,000 after one year. The rate and the number of years matter far more.
- What is the rule of 72?
- Divide 72 by the annual return in percent to estimate doubling time. At 6% money doubles roughly every 12 years. At 9%, every 8.
- Is the growth taxed?
- Inside a TFSA, RRSP, FHSA or RESP, no tax applies while the money grows. In a regular account, interest is fully taxed each year at your marginal rate. Dividends and capital gains are taxed at lower rates. Growth here is shown before tax.
- Why show today's dollars?
- Because $500,000 in 30 years buys much less than $500,000 today. Enter an inflation rate, 2.1% under the 2026 guidelines, to see the future balance in today's buying power.
Tax-saving strategies that use this calculator
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
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