Tools
Compound Interest Calculator Canada
Enter your investment details to see how your money grows over time through the power of compounding. Adjust the inputs and watch the chart update instantly.
Investment Details
S&P 500 historical avg ≈ 10% (7% inflation-adjusted)
Final Balance
$464,653
After 25 years
Total Contributed
$160,000
Your money in
Interest Earned
$304,653
66% of final balance
Money Multiplied
2.90×
Final ÷ total contributed
Milestones
Growth Over Time
The dark area shows interest compounding on top of your contributions.
Year-by-year breakdown
| Year | Annual Contribution | Annual Interest | Total Contributed | Total Interest | Balance |
|---|---|---|---|---|---|
| 1 | $6,000 | $955 | $16,000 | $955 | $16,955 |
| 3 | $6,000 | $1,997 | $28,000 | $4,411 | $32,411 |
| 6 | $6,000 | $3,860 | $46,000 | $14,042 | $60,042 |
| 9 | $6,000 | $6,157 | $64,000 | $30,108 | $94,108 |
| 12 | $6,000 | $8,988 | $82,000 | $54,110 | $136,110 |
| 15 | $6,000 | $12,480 | $100,000 | $87,895 | $187,895 |
| 18 | $6,000 | $16,784 | $118,000 | $133,742 | $251,742 |
| 21 | $6,000 | $22,091 | $136,000 | $194,461 | $330,461 |
| 24 | $6,000 | $28,634 | $154,000 | $273,515 | $427,515 |
| 25final | $6,000 | $31,138 | $160,000 | $304,653 | $464,653 |
Results are for illustrative purposes only. Actual returns vary and are not guaranteed. Does not account for taxes, fees, or inflation. Not financial advice.
How it works
01
Set Your Numbers
Enter how much you start with, how much you add each month, and the annual return you expect. The S&P 500 has returned ~10% historically, or ~7% after inflation.
02
Interest on Interest
Each month, your return is calculated on the full balance — including all the interest already earned. This is compounding: your gains generate their own gains.
03
Time is the Variable
The longer your horizon, the more dramatic the curve. The dark area on the chart (interest) eventually dwarfs the light area (your actual contributions).
Good to know
What return rate should I use? For broad market index funds (e.g., XEQT, VFV), historical returns average 7–10% annually before inflation. A conservative planning rate of 6–7% is commonly used. Higher-risk portfolios may target 10%+, but past performance is no guarantee.
Does compounding frequency matter? Yes, but less than you might think. Monthly compounding slightly outperforms annual compounding at the same nominal rate. The bigger lever is always the return rate and the number of years invested.
Where should I invest? In Canada, the TFSA and RRSP are the most powerful accounts — both shelter compound growth from tax. Max your contribution room before investing in taxable accounts.
What this doesn't model. This calculator assumes a constant annual return, no taxes on growth, and no fees. Real-world results will vary. Use it for planning intuition, not precise projections.