Compound Interest Calculator

Credit Canada’s Compound Interest Calculator

Which path will you take?

Compound interest is when you earn interest on your money, and then earn interest on that interest. It’s one of the most powerful forces in your financial life. When you save and invest your money, you earn interest on your funds. Over time, you also earn interest on the interest earned, helping your money grow faster.

The Future You Compound Interest Calculator shows you how your money could grow over time across three paths: not saving, saving without investing, and investing. Compare the three paths and see how today’s choices could shape your financial future.

The Future You Calculator

Which path will you take?

Make a few choices and see how your money could grow over time.

Step 1: Make your choices

Choose an amount you can comfortably save each month.
Enter any savings you have to start with
Choose when you expect to need the money.

Select each option below to see how it changes your results in Path 3

Very low risk and easy access, but modest growth. Assumed annual return: 5.0%

Step 2: See What Happens

Path 1 - set nothing aside

$0

Nothing saved, nothing grown

Path 2 - Set Aside Cash at 1% interest

$13,000

Same deposits, no growth

Path 3 - Invest It

$23,264

Growth adds $10,400

Investing $50 a month for 20 years at an assumed annual return of about 5.0% a year in a balanced investment portfolio could leave you with $23,264, compared with $13,000 if you simply saved the amount. That's $10,264 more, or 79% more than saving.

Step 3: Watch it grow

  • Path 1: Set nothing aside
  • Path 2: Set aside, don't invest
  • Path 3: Invest
  • What you put in: $0
  • Interest on your deposits: $0
  • Interest on interest (compounding): $0

How compound interest helps: Of the $0 in growth, $0 comes from earning interest on previous interest. Over longer periods, compounding can make a bigger difference. Overall, your balance ends up 0% more than if you hadn't invested.

Year-by-year schedule

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For illustration only. Returns are assumptions, not forecasts or guarantees. Investments can lose value and results will vary. Contributions are made at the end of each month; no fees, taxes or inflation are included. This is not financial advice.

How to Use the Calculator

1. Choose your starting point
Enter how much you can save each month, how much you have to start with, and when you’ll need the money (5, 10, 20, 30, or 40 years).

2. Choose where your money goes
Select a savings account, GIC, balanced portfolio, or stock market investment.

3. Compare your three paths
The calculator shows how your money could grow under three scenarios:

Path 1: Don’t Save or Invest
See what your future could look like if you don’t set money aside.

Path 2: Save, Don’t Invest
See how compound interest could help your money grow if you saved but didn’t invest.

Path 3: Invest
See how investing could help your money grow over time through potential returns and compound interest.

How do you calculate compound interest?

What’s the difference between simple and compound interest?

How often does interest compound? (daily vs monthly vs annually)

How does compound interest work on a GIC or savings account in Canada?

Can compound interest work against me? (credit card and loan debt)