Compound Interest Calculator

See how your savings grow with compound interest: starting deposit, monthly contributions, interest rate, time and compounding frequency. Ideal for TFSA, RRSP and FHSA planning.

The compound interest formula

A = P (1 + r / n)^nt, where P is the starting amount, r the annual rate, n the number of compounding periods per year and t the number of years. Regular contributions are added each month and earn interest from the month they are deposited.

The power of time

$10,000 plus $250 a month at 6% for 20 years grows to about $148,600, and more than half of that ($78,600) is interest. Wait 10 years to start and you end up with about $59,000, less than half. Starting early matters more than the rate.

The rule of 72

Divide 72 by the annual rate to estimate how many years it takes to double your money. At 6%, money doubles in about 12 years; at 8%, about 9 years.

Where compound growth happens in Canada

TFSA: growth and withdrawals are tax-free.
RRSP: contributions are deductible and growth is tax-deferred until withdrawal.
FHSA: for first-time home buyers, deductible contributions and tax-free withdrawals for a qualifying home.
RESP: the government adds a 20% grant (CESG) on contributions up to annual limits.

Returns are not guaranteed. This calculator assumes a constant rate and does not account for taxes, fees or inflation.

FAQ

What is compound interest?

Interest earned on both your original money and the interest it has already earned. Over time, growth accelerates.

Does daily compounding make a big difference?

Not much. At 6%, annual compounding gives 6.00% a year, monthly 6.17% and daily 6.18%. Time and contributions matter far more.

How much will $10,000 be worth in 10 years?

At 5% compounded annually, about $16,289. At 7%, about $19,672.

Is this calculator good for a TFSA or RRSP?

Yes, for projections. Enter your expected average return; remember that investment returns vary from year to year.