How much do I need to save each month to reach my goal?

Divide the amount by the months, then trim a little for interest. $3,000 in 12 months is $250 a month at 0%, and about $246 a month at 2.75% with deposits at the start of each month. Over longer periods interest does more of the work. $50,000 in 10 years at 5% needs about $321 a month, not $417.

Should the money go in a TFSA?

Yes, whenever you have room. Interest and growth inside a TFSA are tax-free. You can withdraw for the goal at any time, and the room comes back the following January. The 2026 limit is $7,000, and unused room from earlier years carries forward. Outside a TFSA, savings and GIC interest is fully taxed at your marginal rate.

What is a GIC ladder and why does the planner suggest one?

Several one-year GICs bought at different times, so they mature at different dates. For a goal one to five years away, buying a one-year GIC every three months locks in a rate the bank cannot cut, and each GIC still matures before you need the money.

Is a savings account or a GIC better for a one-year goal?

For anything under a year, a high-interest savings account. It is fully liquid, pays interest monthly and is CDIC-insured at a member institution. A GIC pays a little more but locks the money, so a change of plans costs you. For an emergency fund the savings account wins at any horizon, because the whole point is same-day access.

Why not invest the money for a higher return?

Because a fund can be down 20% in the year you need the cash. The planner only suggests an index fund for goals more than five years away, and even then the assumed return is an average, not a promise. Within about two years of the date, move the money to GICs or a savings account.

I'm saving for a first home. What about the FHSA?

Use it first. The First Home Savings Account takes $8,000 a year, up to $40,000 in a lifetime. The deposit is tax-deductible like an RRSP, and the withdrawal for a qualifying first home is tax-free. Put the first $8,000 a year there, and the rest of the down payment in a TFSA.

What interest rate should I assume?

The rate your bank pays today, which you can type in under More options. The defaults (2.75% for a savings account, 3.5% for a one-year GIC, 5% for an index fund) are assumptions, not quotes, and rates move with the Bank of Canada policy rate. For short goals it barely matters.

What if I can't afford the monthly amount it shows?

Switch to "What I can save a month" and the planner tells you when you get there instead. Or push the date out, lower the target, or add a lump sum such as a tax refund.

Goal Savings Planner (Canada, 2026)

Pick what you are saving for. Enter the amount and the date you need it, or what you can put away each month. You get the monthly deposit that gets you there, where the money should sit and why, and what it grows to. A checklist helps you set it up to run on its own.

Save each month for the vacation$410.29$410.29 at the start of each month for 12 months (until about October 2027) grows to $5,000 in a GIC ladder inside your TFSA at 3.70%: $4,923 of deposits and $77 of interest.

You deposit$4,923

Interest$77

Home for the moneyGIC ladder

AccountTFSA

Where the money should sit

Your date is fixed and one to five years away. A one-year GIC locks in a rate the bank cannot cut, and buying one every three months means each one matures before you need it. The trade-off: GIC money is locked until maturity, so keep anything you might need sooner in the savings account.

Hold it inside a TFSA. You have $7,000 of room left from this year's $7,000 limit, plus any unused room from earlier years. Interest and growth are tax-free, and you can take the money out the day you need it. The room comes back the next January. Not sure of your room? Check it here.

Your GIC ladder

Deposits collect in the savings account. Every three months, move what has built up into a one-year GIC. Each one matures before your date, so nothing is locked in when you need it. Deposits from the last year stay in the savings account.

GIC	Buy	Matures	Amount	Interest at maturity
#1	Month 1 (October 2026)	Month 12 (October 2027)	$410.29	$15.18

What each home would need a month

	Rate assumed	Per month	Grows to
High-interest savings account	2.70%	$410.61	$5,000
GIC ladder (recommended)	3.70%	$410.29	$5,000
Index fund	5.00%	$405.51	$5,000

The savings and GIC rates are yours to change under More options. The index fund line is an assumed average, not a promise, which is why it is only recommended for goals more than five years away.

Month by month

Month	Deposit	Interest	In GICs	Balance
1	$410.29	$0.00	$410.29	$410.29
2	$410.29	$0.92	$410.29	$821.50
3	$410.29	$1.85	$410.29	$1,233.64
4	$410.29	$2.78	$410.29	$1,646.71
5	$410.29	$3.71	$410.29	$2,060.70
6	$410.29	$4.64	$410.29	$2,475.63
7	$410.29	$5.57	$410.29	$2,891.49
8	$410.29	$6.51	$410.29	$3,308.28
9	$410.29	$7.44	$410.29	$3,726.02
10	$410.29	$8.38	$410.29	$4,144.69
11	$410.29	$9.33	$410.29	$4,564.31
12	$410.29	$25.45	$0.00	$5,000.05

Show the math

GIC ladder	Each rung pays its interest once, at maturity. Money waiting between rungs earns the savings rate. The lines below describe the savings-account case.
Monthly rate	3.70% ÷ 12 = 0.3083%
Deposits	At the start of each month, so every deposit earns a full month
Months	12
Ladder	Simulated month by month. Cash earns the savings rate and each GIC pays its rate once at maturity. The deposit is the smallest amount that reaches the target
Future value	saved × (1 + i)^n + deposit × ((1 + i)^n − 1) ÷ i × (1 + i)

Rates are yearly assumptions divided by 12 and applied monthly. Inside a TFSA nothing is taxed. Outside one, interest is taxed at your marginal rate, deducted here as it is earned (in practice you pay it with your return the next spring). Index fund growth is shown before tax and is not guaranteed.

What you need to know for 2026

With deposits at the start of each month, $246.37 a month reaches $3,000 in 12 months at 2.7%. At 0% it would be $250.
Interest is tax-free inside a TFSA. The 2026 TFSA limit is $7,000. Someone 18 or older since 2009 who never contributed has $109,000 of room.
Money needed within about 3 years belongs in cash or GICs (FP Canada guideline). The 2026 guideline return is 2.7% for cash and 5.0% for a balanced portfolio, before fees.
The FCAC suggests an emergency fund of 3 to 6 months of expenses, kept where it can be withdrawn the same day.
For a first home, the FHSA takes $8,000 a year ($40,000 lifetime). Contributions are deductible. Withdrawals for a qualifying home are tax-free.
For education, an RESP adds the 20% Canada Education Savings Grant, up to $500 a year and $7,200 per child.

How this planner works

From the amount and the date, the planner solves the monthly deposit, the same arithmetic as a bank’s recurring deposit plan. What you already have grows at the same rate.

Then three plain rules pick a home for the money:

Under 12 months, or any emergency fund: a high-interest savings account. Liquid, insured, interest paid monthly.
12 to 60 months with a fixed date: a ladder of one-year GICs bought every three months, each maturing before the date. The last year’s deposits stay in the savings account.
More than 60 months: a low-cost index fund at an assumed return that is not guaranteed. Move it to cash as the date approaches.

Whatever the home, the money sits in a TFSA when you have room, so the interest is tax-free. Without room, the planner taxes the interest at your marginal rate if you give it your income. A first-home goal points you to the FHSA first. An education goal points to the RESP and its $500-a-year grant.

Worked examples

Goal	Target	Already saved	Time	Home	Monthly deposit	Grows to
Vacation	$5,000	$0	18 months	GIC ladder in a TFSA	$271.04	$5,000
Down payment	$40,000	$5,000	4 years	GIC ladder in an FHSA, then TFSA	$666.98	$40,000
Something big	$50,000	$0	10 years	Index fund in a TFSA	$320.66	$50,000

That assumes 2.75% for the savings account, 3.5% for one-year GICs and 5% for the index fund. The vacation needs $271.04 a month rather than $277.78, because interest covers $121 of it. The down payment’s $5,000 head start grows on its own, and the GIC ladder earns $2,985 along the way.

Assumptions

Deposits go in at the start of each month. Interest is credited monthly at the yearly rate divided by 12. GICs pay their rate once, at maturity.
Rates stay the same for the whole period. Real savings rates move with the Bank of Canada policy rate.
TFSA room is this year’s limit less what you have contributed. Unused room from earlier years is not counted unless you reduce the “contributed so far” figure. The TFSA room calculator gives the exact number.
Tax on interest outside a TFSA is taken as it is earned. In practice you pay it with your return the following spring. Index fund growth is shown before tax.
A GIC ladder assumes your bank sells one-year non-redeemable GICs in the rung amounts shown. Combine rungs if one is below the minimum.

How to set the goal up so it runs on its own

Twenty minutes once. After that the transfer happens every payday without you, and the only job left is a check at the halfway point.

TodayOpen the account the planner names, or use one you already have. For anything under five years that is a high-interest savings account, which the GIC ladder also starts from. For a longer goal it is a TFSA at a brokerage. Look for no monthly fee and no minimum balance.FCAC: savings accounts ↗
TodaySaving for a first home: open an FHSA first and send the first $8,000 a year there (deductible going in, tax-free coming out, $40,000 lifetime). The rest of the down payment goes to the TFSA.Opening an FHSA ↗
TodaySaving for a child’s education: open an RESP and fill in the grant form at the provider, so the 20% Canada Education Savings Grant (up to $500 a year) is added to your deposits.Registered Education Savings Plans ↗
TodayHold the account inside a TFSA if you have room, so the interest is tax-free. Your room is in CRA My Account under “TFSA contribution room”. Unused room from earlier years counts.CRA My Account ↗
TodaySet up the automatic transfer for the day after payday, from chequing to the goal account, for the monthly amount shown above. In online banking it is under Transfers as a recurring or pre-authorized transfer. Scotiabank calls it a Pre-Authorized Contribution (PAC) and lets you set one up online for a TFSA. RBC clients can add NOMI Find & Save in the RBC Mobile app, which moves spare dollars on top.Scotiabank: Pre-Authorized Contributions ↗
TodayName the account after the goal (“Japan, March 2028”) so you never raid it by accident. Most banks let you nickname an account. Tangerine has a Savings Goals tool built into its savings accounts.Tangerine: savings accounts ↗
Every three monthsFollow the ladder table. Every three months, move what has built up into a one-year non-redeemable GIC, so each one matures before your date. Check the bank’s minimum purchase (often $500 or $1,000) and combine rungs if one is below it. GICs of five years or less are CDIC-insured at a member institution.CDIC: what’s covered ↗
When you reach the targetStop the transfer at the target and leave the fund alone. It is for a job loss or a repair, not a sale. Top it back up after every withdrawal.FCAC: setting up an emergency fund ↗
Halfway to the dateCompare the balance with the month-by-month table. If you are behind, raise the transfer by the gap divided by the months left. If rates changed, update the assumptions here and the plan updates with them.

Common questions

Frequently asked questions

How much do I need to save each month to reach my goal?: Divide the amount by the months, then trim a little for interest. $3,000 in 12 months is $250 a month at 0%, and about $246 a month at 2.75% with deposits at the start of each month. Over longer periods interest does more of the work. $50,000 in 10 years at 5% needs about $321 a month, not $417.
Should the money go in a TFSA?: Yes, whenever you have room. Interest and growth inside a TFSA are tax-free. You can withdraw for the goal at any time, and the room comes back the following January. The 2026 limit is $7,000, and unused room from earlier years carries forward. Outside a TFSA, savings and GIC interest is fully taxed at your marginal rate.
What is a GIC ladder and why does the planner suggest one?: Several one-year GICs bought at different times, so they mature at different dates. For a goal one to five years away, buying a one-year GIC every three months locks in a rate the bank cannot cut, and each GIC still matures before you need the money.
Is a savings account or a GIC better for a one-year goal?: For anything under a year, a high-interest savings account. It is fully liquid, pays interest monthly and is CDIC-insured at a member institution. A GIC pays a little more but locks the money, so a change of plans costs you. For an emergency fund the savings account wins at any horizon, because the whole point is same-day access.
Why not invest the money for a higher return?: Because a fund can be down 20% in the year you need the cash. The planner only suggests an index fund for goals more than five years away, and even then the assumed return is an average, not a promise. Within about two years of the date, move the money to GICs or a savings account.
I'm saving for a first home. What about the FHSA?: Use it first. The First Home Savings Account takes $8,000 a year, up to $40,000 in a lifetime. The deposit is tax-deductible like an RRSP, and the withdrawal for a qualifying first home is tax-free. Put the first $8,000 a year there, and the rest of the down payment in a TFSA.
What interest rate should I assume?: The rate your bank pays today, which you can type in under More options. The defaults (2.75% for a savings account, 3.5% for a one-year GIC, 5% for an index fund) are assumptions, not quotes, and rates move with the Bank of Canada policy rate. For short goals it barely matters.
What if I can't afford the monthly amount it shows?: Switch to "What I can save a month" and the planner tells you when you get there instead. Or push the date out, lower the target, or add a lump sum such as a tax refund.

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

Put this calculator on your own website

Free for brokers, accountants, advisors and bloggers. Paste this where you want the calculator. It sizes itself and credits GlassLayer with a link. The embed page has the terms and every calculator.

<iframe src="https://glasslayer.ca/embed/goal-savings-planner" title="Goal Savings Planner (Canada, 2026)" style="width:100%;border:0;min-height:900px" loading="lazy"></iframe>
<script>addEventListener('message',e=>{if(e.data&&e.data.type==='glasslayer-embed-height'){document.querySelectorAll('iframe[src*="/embed/"]').forEach(f=>{if(f.contentWindow===e.source)f.style.height=e.data.height+'px'})}})</script>

Data verified for tax year 2026: September 7, 2026 Updated September 11, 2026 By Nishant Malik, founder of GlassLayer