How the math works
The calculator uses the future-value formula: FV = PV × (1+i)n + PMT × ((1+i)n − 1) / i, where i is the monthly rate and n is the number of months. The two solve modes invert that formula in different directions — fixing PMT and solving for n, or fixing n and solving for PMT.
Realistic Canadian return assumptions
- High-interest savings (TFSA, GIC): 3–4% in 2025–2026
- Balanced index portfolio (60/40, 10+ years): 5–7% long-run average
- Pure equity index (TSX/S&P 500/global ETFs): 7–10% long-run, with much higher volatility
- Cryptocurrency / single stocks: not assumable in advance
Why your actual results will lag
Nominal returns are pre-tax and pre-fee. Inside a TFSA, all gains are tax-free; inside a non-registered account they’re taxed at your marginal rate (capital gains at 50%, dividends with credit, interest fully taxable). Management expense ratios (MERs) for typical Canadian mutual funds run 1.5–2.5%; index ETFs are 0.05–0.30%. After inflation (~2% per year long-run), the real purchasing power of your savings grows more slowly than the nominal number suggests.
Educational only
This is not financial advice. Talk to a fee-only Canadian CFP about your actual goals, risk tolerance, debt, and tax situation before making investment decisions.