See how your savings grow over time with regular deposits and compound interest.
Rates as of Q2 2025 (example)
This calculator shows how a savings balance grows over time when you start with an initial deposit and add regular monthly deposits, with interest compounding along the way — useful for planning an emergency fund, a down payment, a vacation, or any other savings goal with a target date.
This calculator compounds your balance monthly: each month, interest is calculated on the current balance and added to it, and then your monthly deposit is added. Over time, interest is earned not just on your deposits but on previously earned interest too, which is why the balance grows faster in later years than in earlier ones, even with the same deposit amount.
Formula: Each month, Interest = Balance × (Annual Rate ÷ 12); Balance = Balance + Interest + Monthly Deposit. Total Interest = Final Balance − Total Deposits (Initial Deposit + sum of all monthly deposits).
Example: Starting with CA$1,000 and depositing CA$250/month at an expected 3% annual interest rate (example rate — enter the rate from your actual savings account) over 10 years, total deposits reach CA$31,000, with total interest earned of roughly CA$5,285 — giving a final balance of about CA$36,285. (Note: this example is for illustration purposes only - actual rates and balances will vary.)
Canadians have several common options for saving toward a goal: regular savings accounts (often lower interest), high-interest savings accounts (HISAs, which can offer noticeably better rates, especially from online banks), and Guaranteed Investment Certificates (GICs, which lock in a fixed rate for a set term in exchange for limited or no access to the funds before maturity - see our GIC Calculator). For tax-advantaged saving, a Tax-Free Savings Account (TFSA) lets your interest grow completely tax-free up to your contribution room, regardless of which underlying product (savings account, GIC, or investments) you hold within it (see our TFSA Calculator). If you're saving toward a home purchase, the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan are additional registered options worth considering alongside a regular savings account. For short-term goals (under a year or two) or your emergency fund, a HISA or short-term GIC ladder is often preferred over riskier investments, since the priority is capital safety and accessibility rather than maximizing returns.
Use the rate currently offered by your actual savings account or the account you're considering. Regular bank savings accounts often offer lower rates, while high-interest savings accounts (particularly from online banks) can offer meaningfully higher rates - check current rates and promotional offers, which can change over time.
If you have available TFSA contribution room, holding your savings account or GIC within a TFSA means any interest earned grows completely tax-free, with no tax owing even when you withdraw it. This is generally advantageous compared to holding the same product in a non-registered account, where interest is taxed as income each year. See our TFSA Calculator for more on contribution room.
This calculator assumes you can deposit and the balance compounds freely each month at a constant rate, similar to a savings account. A GIC typically locks in a fixed rate for a set term (e.g., 1-5 years) with limited or no access to funds before maturity, and may not allow ongoing monthly deposits in the same way - see our GIC Calculator for GIC-specific projections.
A common guideline is 3-6 months of essential living expenses, though the right amount depends on your job stability, dependents, and other factors. Use this calculator to see how long it would take to build your target emergency fund at different monthly deposit amounts, ideally keeping the funds in an accessible high-interest savings account rather than a GIC or investment account.
No. This calculator shows pre-tax growth. If your savings are held in a non-registered account, interest income is generally taxed at your marginal tax rate each year as it's earned - holding savings in a TFSA avoids this. See our Income Tax Calculator for how interest income affects your overall tax.
This calculator assumes a constant interest rate for the entire period, but real savings account rates can change at any time (savings accounts typically have variable rates, while GICs lock in a rate for their term). Treat the result as an estimate based on current rates - your actual balance may be higher or lower depending on how rates move over your savings period.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only and does not represent the rate offered by any specific bank, account, or GIC, and savings account rates are typically variable and can change at any time. This calculator does not account for taxes, which apply to interest earned in non-registered accounts. Always check current rates with your financial institution and consult a qualified financial adviser for personalised savings advice.