This calculator helps you answer a simple question: given your starting amount, regular contributions, and expected rate of return, will you reach your investment goal in time?
It goes a step further by showing two projections side by side — one for a tax-deferred account (RRSP or TFSA) and one for a taxable account. The advanced section lets you add inflation and a marginal tax rate on returns to see results in real purchasing power.
Tax-deferred vs taxable: why it matters
In a TFSA or RRSP, your returns compound on the full balance every year with no annual tax bill. In a taxable account, dividends and interest are taxed in the year you receive them, reducing the effective rate of compounding.
At a 7% gross return with a 43% marginal tax rate, the after-tax return on a taxable account drops to roughly 4%. Over 25 years, that difference compounds into a significant gap — visible clearly in the chart above.
Worked example
- Goal: $1,000,000
- Initial investment: $25,000
- Monthly contribution: $1,500 (= $18,000/year)
- Rate of return: 7%
- Time: 25 years
- Inflation: 2.5%
- Tax rate: 0% (TFSA)
Projected real value: roughly $990,000 — just under the goal in today’s dollars. Increasing contributions to $1,600/month or adding 1–2 more years closes the gap.
Contribution frequency
Monthly contributions generally outperform an equivalent annual lump sum because money enters the account sooner and compounds for longer. The calculator converts your periodic contribution to an annual equivalent for the year-over-year projection.
Scope note: This tool models simplified inflation-adjusted growth. It does not account for contribution room limits, withholding taxes on foreign income, or the distinction between capital gains, eligible dividends, and interest income (which are taxed differently in Canada). For capital gains estimates on your actual investments, see the capital gains tax calculator.