Compound Interest Calculator Canada
Estimate how your portfolio could grow over time from a starting balance, regular contributions, expected return, fees, and inflation. The chart updates instantly so you can see how much of the final value comes from your money versus investment growth.
Projected growth
The blue line is the estimated portfolio value. The gold line is your total invested amount.
Year-by-year projection
| Year | Total invested | Estimated value | Growth | Inflation-adjusted |
|---|
How to use this compound growth calculator
Enter your current investment balance, how much you plan to contribute, how often you will contribute, and the return assumption you want to test. The calculator compounds the portfolio over your chosen time horizon and shows a simple year-by-year estimate.
For investing, “compound interest” is casual shorthand. Stocks and ETFs do not pay a guaranteed interest rate. The better way to think about this calculator is investment growth from returns, reinvestment, and regular contributions.
What this calculator includes
- Starting balance and regular contributions
- Weekly, bi-weekly, monthly, or annual contribution frequency
- Expected annual return
- Annual fee or MER drag
- Inflation-adjusted future value
- Downloadable CSV projection
Methodology: how this calculator works
This calculator uses the numbers you enter. It does not pull live market data, forecast future returns, or assume that stocks earn a smooth return in real life. The projection is a constant-return planning model.
- Net annual return: expected annual return minus the annual fee or MER.
- Period rate:
(1 + net annual return)^(1 / periods per year) - 1. - Contribution timing: regular contributions are added at the end of each contribution period.
- Balance update: each period uses
current balance x (1 + period rate) + contribution. - Total invested: starting amount plus all regular contributions.
- Inflation-adjusted value: nominal future value divided by
(1 + inflation rate)^years. - Estimated fee drag: the difference between the same projection with the fee included and the same projection with the fee set to 0%.
Weekly contributions use 52 periods per year, bi-weekly uses 26, monthly uses 12, and annual uses 1. The return assumption is annualized before fees.
Worked example
Using the default inputs, a $10,000 starting balance, $500 monthly contribution, 6% expected annual return, 0.20% annual fee, 2% inflation, and a 30-year timeline produces an estimated future value of about $524,301. Total contributions are $190,000, estimated investment growth is about $334,301, and the inflation-adjusted value is about $289,451 in today’s dollars. Compared with the same scenario at 0% fees, the estimated fee drag is about $20,391.
Limitations
- It does not model market volatility, crashes, recoveries, or sequence-of-returns risk.
- It does not include tax on interest, dividends, capital gains, or withdrawals.
- It does not check TFSA, RRSP, FHSA, RESP, or other account contribution limits.
- It assumes contributions happen on schedule and are invested immediately at the modelled period rate.
- It is a planning estimate, not a guarantee or personalized financial advice.
Why fees matter so much
A small fee difference can compound for decades. A 0.20% ETF fee and a 2.00% mutual fund fee may not look far apart in one year, but the gap can become large over a long investing timeline. For a deeper explanation, see what MER means.
Using this calculator for a TFSA or RRSP
This calculator does not apply tax rules, contribution-room limits, or withdrawals. It is useful for thinking about long-term growth inside accounts like a TFSA or RRSP, but you still need to follow the rules for each account.
If you are still choosing where to invest first, start with TFSA vs RRSP. If you are new to buying ETFs, read how to start investing and compare brokerages in Wealthsimple vs Questrade.
Last reviewed June 3, 2026. Default assumptions: 6% annual return, 0.20% MER, and 2% inflation. This calculator uses user-entered values only.
FAQ
How do I calculate compound growth on investments?
Use your starting balance, regular contributions, expected annual return, and time horizon. This calculator compounds the portfolio at each contribution period and then summarizes the result by year.
What return should I use?
Use a conservative long-term estimate, not a recent one-year return. Broad diversified stock portfolios are volatile, so any expected return is only a planning assumption.
Does this calculator include taxes?
No. It does not calculate tax on interest, dividends, capital gains, or withdrawals. Taxes depend on whether you invest in a TFSA, RRSP, FHSA, RESP, or non-registered account.
Does MER really make a big difference?
Yes. Fees reduce the return that compounds over time. The longer the timeline, the more a fee difference can matter.
Can I use this for ETF investing in Canada?
Yes. It works well for simple ETF scenarios, especially if you enter a reasonable expected return and the MER for the ETF or portfolio you are considering.
Is the result guaranteed?
No. The result is only a projection. Real investment returns are uneven and can be negative in some years.
