Compound Interest Calculator (Canada)
Enter what you have, what you add each month and the return you expect. See what it grows to, how much of that is growth rather than your own money, how fast it doubles, and what one small change in each input would do.
What you would have in 20 years$125,510
You put in $58,000. Growth adds $67,510, 116% on top of every dollar you saved.
Your contributionsTotal with growth
Growth earned$67,510
Effective yearly rate6.17%
Money doubles every11.6 years
Rule of 72 says12.0 years
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 taxable account, interest is taxed each year at your marginal rate.
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 the original amount plus year one's growth, and so on. Over long periods the 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, so you can see how sensitive the result is.
- Does the compounding frequency matter much?
- Less than people expect. At 6%, monthly compounding gives an effective 6.17% a year versus 6.00% for annual: about $170 more on $100,000 after one year. The rate itself and the number of years matter far more.
- What is the rule of 72?
- A quick way to estimate doubling time: divide 72 by the annual return in percent. At 6% money doubles roughly every 12 years; at 9%, every 8. The calculator shows the exact figure next to it.
- 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, and dividends and capital gains are taxed at lower effective rates. The calculator shows pre-tax growth; use the GIC vs HISA tool to see the after-tax effect of your rate.
- Why show today's dollars?
- Because $500,000 in 30 years buys much less than $500,000 today. Entering an inflation rate, 2.1% under the 2026 guidelines, shows what the future balance is worth in today's purchasing power.
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
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