See how your money grows over time with the power of compound interest.
Future Value
$300,850.72
after 20 years
Total Contributed
$130,000.00
43% of total
Interest Earned
$170,850.72
57% of total
Waypoint Budget helps you budget for monthly investments and track your portfolio growth.
Start Investing FreeAlbert Einstein reportedly called compound interest the eighth wonder of the world. The key is starting early: $500/month at 7% for 30 years becomes $566,000+, but only $86,500 if you wait 20 years and invest for just 10.
Simple interest pays you on your original deposit only. Compound interest pays you on the deposit plus every bit of interest it has already earned, so the balance grows faster the longer it sits. This calculator applies that idea to five inputs:
The chart splits your ending balance into what you contributed and what the market or bank paid you. Results are estimates in today's dollars with no fees, taxes, or inflation applied.
Less than people expect. Take $10,000 at 7% for 20 years with no contributions. Compounded once a year it grows to about $38,700. Monthly, about $40,400. Daily, about $40,500. The jump from annual to monthly is worth having, but the rate and the number of years matter far more than the frequency. Use the frequency your account states and spend your energy on contributions and time.
Divide 72 by your annual rate to estimate how many years it takes money to double. At 7% that is a little over 10 years. At 4% it is 18 years. At 2%, the kind of rate a basic savings account pays, it is 36 years. That gap is why the rate you choose in this calculator changes the ending balance so dramatically over long periods.
Use the rate your account or fund states. For a high-interest savings account that is the posted rate. For a diversified stock portfolio, long-run historical returns have landed in the 6% to 8% range before fees and inflation, but no year is average. Running the calculator at 5% and at 7% gives you a realistic band instead of a single number.
No. The result is in nominal dollars. To see growth in today's purchasing power, subtract roughly 2% from your rate, which is the Bank of Canada's inflation target. Our inflation calculator shows what that does to a future balance.
Yes, unless the account is a TFSA, RRSP, or FHSA. Interest earned in a regular savings account or GIC is added to your income and taxed at your marginal rate, even if you never withdraw it. That is the main reason registered accounts compound faster over time.
Money invested earlier has more time to compound, so a lump sum you already have is usually best put to work right away. Monthly contributions are how most people build the lump sum in the first place. The calculator lets you model both at once.
Treat the contribution as a fixed expense that leaves your chequing account the day you are paid. Run your income through the budget calculator to see how much of your take-home pay can go to savings, then set up an automatic transfer for that amount.
Disclaimer: This calculator is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on simplified assumptions and may not reflect your actual situation. Tax laws, contribution limits, and regulations change frequently. Always consult a qualified financial advisor or tax professional before making financial decisions. See our Terms of Service for full details.