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Investment Growth Calculator (Canada)

$
yr
%

Total value

$98,615

Expected return: 6.5%
Amount invested
$48,000
Estimated returns
$50,615
Total value
$98,615

Growth over time

120
Amount investedEstimated returns

Estimates only. Returns are not guaranteed; past performance does not predict future results.

How this investment calculator works

This free Canadian investment calculator projects how your money could grow in mutual funds, index funds and ETFs inside a TFSA, RRSP or non-registered account. Add a monthly contribution, a lump sum, or both; choose an expected return and a time horizon, and it compounds month by month. It also shows your result after fees and after tax — including the 50% capital-gains inclusion rule — and can adjust for inflation.

Using each mode

  • Monthly: enter a regular contribution; the calculator invests and compounds it each month.
  • Lump sum: model a single investment growing over time.
  • Step-up: increase your contribution by a set percentage each year.
  • Withdrawal: draw a regular income from a balance and see how long it lasts (RRIF-style drawdown).
  • Goal: set a target and solve for the contribution, lump sum, time or return required.

Toggle inflation-adjusted, fees, after-tax and the conservative/expected/aggressive scenario band.

What return should I assume?

A diversified equity portfolio has historically returned roughly 6–8% a year over the long run before inflation; balanced portfolios sit lower. Returns vary year to year and are never guaranteed, so use the scenario range rather than a single number. The calculator defaults to 6.5%.

How mutual funds are taxed in Canada

In a TFSA, all growth and withdrawals are completely tax-free. In an RRSP, contributions are tax-deductible and grow tax-deferred, with withdrawals taxed as income (an RRIF handles drawdown in retirement). In a non-registered account, only 50% of capital gains are taxable at your marginal rate, eligible Canadian dividends get the dividend tax credit, and foreign dividends are fully taxable. See the Canada Revenue Agency (CRA) guidance on capital gains and registered plans. Switch the account type to compare a TFSA, RRSP and non-registered holding.

How fees (MER) reduce returns

Canada has historically had some of the world's higher fund fees. A mutual fund's management expense ratio (MER) is deducted every year and compounds against you: paying 2% instead of 0.25% (a low-cost index ETF) can cost a six-figure sum over a few decades on a large balance. Turn on the fees toggle to see your net-of-fees result.

TFSA, RRSP and the order to use them

For most Canadians the priority is: capture any employer RRSP match, use a TFSA for flexible tax-free growth, and an RRSP for higher-income years (deduction now, taxed later). TFSA and RRSP contribution room accumulates and unused room carries forward. Use the account toggle to compare the same fund inside each wrapper.

Is a TFSA or an RRSP better for mutual funds?⌄
A TFSA gives tax-free growth and withdrawals with no tax on the way out, ideal if you expect a similar or higher tax rate later. An RRSP gives an upfront deduction and tax-deferred growth but withdrawals are taxed as income, ideal in high-earning years. Use the account toggle to compare both on identical inputs.
How are capital gains on mutual funds taxed in Canada?⌄
In a non-registered account, only 50% of a capital gain is included in your taxable income and taxed at your marginal rate. Inside a TFSA there is no tax at all, and inside an RRSP/RRIF gains are tax-deferred until withdrawal (then taxed as income).
What return should I use for a Canadian investment calculator?⌄
A diversified equity portfolio has averaged roughly 6–8% a year before inflation over the long run, with balanced portfolios lower. Returns are not guaranteed; use the conservative/expected/aggressive scenario band rather than a single figure.
How much does the MER cost me over time?⌄
A lot. Because the management expense ratio is charged every year on the whole balance, paying 2% instead of 0.25% can reduce a long-term result by a six-figure amount on a large portfolio. Low-cost index funds and ETFs keep more of the return — use the fees toggle to see the impact.
Can I use this as an RRSP or RRIF drawdown calculator?⌄
Yes. Use Monthly or Lump sum mode with the RRSP account for the accumulation phase, and Withdrawal mode to model RRIF-style drawdown — entering your balance and a monthly income to see how many years it lasts.
How much do I need to invest to reach my goal?⌄
Use Goal mode, set your target, and solve for the required monthly contribution, lump sum, time or return. The calculator works backward from your target at your chosen growth rate.