Compound interest calculator
See what your savings become with a starting deposit, monthly contributions and compound interest — the ideal tool to set a savings goal (RRSP, TFSA, emergency fund).
Future value
$84,919
Interest earned
$35,919
Frequently asked questions
What is compound interest?
It is interest calculated not only on your starting amount, but also on the interest already earned. Over time, your interest itself earns interest, which makes savings grow faster. The longer the horizon, the more powerful the effect.
What rate of return should I use?
It depends on your investments. As a guide: a savings account often returns 1 to 4%, while a diversified long-term portfolio has historically aimed for around 5 to 7% per year on average, with no guarantee. Use a conservative assumption and remember actual returns vary year to year.
Does this account for inflation and taxes?
No. The result is a gross amount before taxes and before the effect of inflation. In an RRSP or TFSA, growth is sheltered from tax (RRSP is taxed on withdrawal, TFSA is not). Real purchasing power will be reduced by inflation over long periods.
Is my data saved?
No. The calculation runs entirely in your browser: no information is sent to or stored on our servers.
Related guides
Sources and references
This tool illustrates a mathematical projection at a constant rate; it is not investment advice. Actual returns vary and are not guaranteed.
Author's note: the most powerful ingredient here isn't the rate, it's time. Starting to save even small amounts early almost always beats large amounts started late. Automate a monthly transfer on payday — it's the simplest way to let compound interest work for you.