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

Divide the amount by the number of 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, and you can withdraw for the goal at any time; the room you used 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?

A GIC ladder is 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, while each GIC still matures before you need the money. Deposits made in the last year stay in the savings account because a one-year GIC would not mature in time.

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 at an assumed return you should treat as an average, not a promise. As the date gets within about two years, 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 actually 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. Try a lower number to see how much the answer depends on it: 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 to what you already have; every $100 of savings today is $100 less to find later, plus its interest.

Goal Savings Planner: Save for a Vacation, Car, Wedding or Down Payment

Pick what you are saving for, enter the amount and the date you need it (or what you can put away each month), and see the monthly deposit that gets you there, where the money should sit and why, what it grows to, and a checklist to set the whole thing up so it runs on its own.

Save each month for the vacation$410.26$410.26 at the start of each month for 12 months (until about September 2027) grows to $5,000 in a GIC ladder inside your TFSA at 3.50%: $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 the goal arrives; the room comes back the following 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 when you need it. Deposits made in the last year stay in the savings account.

GIC	Buy	Matures	Amount	Interest at maturity
#1	Month 1 (September 2026)	Month 12 (September 2027)	$410.26	$14.36

What each home would need a month

	Rate assumed	Per month	Grows to
High-interest savings account	2.75%	$410.50	$5,000
GIC ladder (recommended)	3.50%	$410.26	$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	$410.26	$0.00	$410.26	$410.26
2	$410.26	$0.94	$410.26	$821.46
3	$410.26	$1.88	$410.26	$1,233.60
4	$410.26	$2.83	$410.26	$1,646.69
5	$410.26	$3.77	$410.26	$2,060.72
6	$410.26	$4.72	$410.26	$2,475.71
7	$410.26	$5.67	$410.26	$2,891.64
8	$410.26	$6.63	$410.26	$3,308.53
9	$410.26	$7.58	$410.26	$3,726.37
10	$410.26	$8.54	$410.26	$4,145.17
11	$410.26	$9.50	$410.26	$4,564.93
12	$410.26	$24.82	$0.00	$5,000.01

Show the math

Monthly rate	3.50% ÷ 12 = 0.2917%
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, 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.

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: a high-interest savings account for anything under five years (the GIC ladder starts from it too), or a TFSA at a brokerage for a longer goal. 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 lives 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 automatically 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: move what has built up into a one-year non-redeemable GIC every three months, 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. Behind? Raise the transfer by the gap divided by the months left. 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 number of 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, and you can withdraw for the goal at any time; the room you used 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?: A GIC ladder is 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, while each GIC still matures before you need the money. Deposits made in the last year stay in the savings account because a one-year GIC would not mature in time.
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 at an assumed return you should treat as an average, not a promise. As the date gets within about two years, 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 actually 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. Try a lower number to see how much the answer depends on it: 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 to what you already have; every $100 of savings today is $100 less to find later, plus its interest.

Full guide: how it works, a worked example, every rule and every source Read the guide →

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.

<iframe src="https://glasslayer.ca/embed/goal-savings-planner" title="Goal Savings Planner: Save for a Vacation, Car, Wedding or Down Payment" 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