📈 Investment Growth

Compound Interest Calculator Canada

See exactly how your money grows over time when returns earn returns — with regular contributions factored in.

How does compound interest work in Canada?

Compound interest means your returns generate their own returns over time. A $10,000 investment at 7% annually doesn't just earn $700 per year — it earns interest on the interest, creating exponential growth. Combined with regular contributions to a TFSA or RRSP, the long-term results can be substantial. This calculator shows your exact future value, total interest earned, and how your balance grows year by year.

Your Numbers
Initial Investment
The amount you're starting with today.
$0
$
Annual Interest Rate
Expected annual return or interest rate.
6%
Years
How long you plan to invest.
10 yrs
Monthly Contribution
Regular monthly deposits added to your investment.
$0
$
Compounding Frequency
Future Value
$0
–
Total Contributed$0
Interest Earned$0
Money Multiplier0×
PrincipalInterest
PrincipalInterest
Balance over time

🏦 TFSA vs RRSP

Both accounts let your investments compound tax-free while invested. The difference is when you pay tax — RRSP defers tax to withdrawal, TFSA uses after-tax money but withdrawals are completely tax-free.

📅 Start Early

Thanks to compounding, time in the market matters more than timing the market. Starting 10 years earlier can more than double your final balance — even with smaller contributions.

💡 Compounding Frequency

More frequent compounding (monthly vs annually) slightly increases your effective return. A 6% rate compounded monthly has an effective annual rate of 6.168%.