A savings account interest calculator shows you exactly how much your money will grow based on your initial deposit, regular contributions, interest rate, and compounding frequency. Whether you are building an emergency fund, saving for a goal, or comparing bank products, this tool projects your balance and total interest earned year by year.
How this savings account interest calculator works
Enter your initial balance, monthly deposit amount, annual interest rate, compounding frequency, and time period. The calculator shows your future balance, total deposits, total interest earned, effective annual rate, and a year-by-year growth table.
Compounding options:
- Daily — Interest calculated every day (365 periods/year)
- Monthly — Interest calculated once per month (12 periods/year)
- Quarterly — Interest calculated every 3 months (4 periods/year)
- Semi-annually — Interest calculated twice per year
- Annually — Interest calculated once per year
| Year | Deposits | Interest | Balance |
|---|
How compound interest works
Compound interest is often called the “eighth wonder of the world” because it makes your money grow exponentially. Here is how it works:
Year 1: You earn interest on your original deposit Year 2: You earn interest on your deposit plus the interest from Year 1 Year 3: You earn interest on your deposit plus all accumulated interest
This compounding effect accelerates over time, which is why even a small difference in interest rates matters significantly over 10, 20, or 30 years.
Compounding frequency comparison
$10,000 at 4.00% for 10 years, no additional deposits:
| Compounding | Balance After 10 Years | Total Interest | Effective Rate |
|---|---|---|---|
| Daily | $14,918 | $4,918 | 4.081% |
| Monthly | $14,908 | $4,908 | 4.074% |
| Quarterly | $14,889 | $4,889 | 4.060% |
| Semi-Annually | $14,859 | $4,859 | 4.040% |
| Annually | $14,802 | $4,802 | 4.000% |
The difference between daily and annual compounding on $10,000 over 10 years is only $116 — further proof that rate matters more than frequency.
The power of regular deposits
Regular deposits make a much bigger difference than compounding frequency:
$5,000 initial deposit at 4.00%, monthly compounding:
| Monthly Deposit | Balance After 5 Years | Total Interest |
|---|---|---|
| $0 | $6,104 | $1,104 |
| $100 | $12,803 | $1,703 |
| $200 | $19,502 | $2,302 |
| $500 | $39,598 | $4,098 |
Adding just $200/month more than triples your balance and doubles your interest earned.
Savings account rates in Canada (2026)
| Account Type | Typical Rate | Notes |
|---|---|---|
| Big Five bank savings | 0.01–1.50% | Often near zero for basic accounts |
| Big Five HISA | 1.50–3.00% | Higher minimum balance required |
| Online bank HISA | 3.50–4.50% | Best everyday rates |
| Credit union savings | 2.50–4.50% | Provincial deposit insurance |
| Promotional rate | 4.50–6.00% | Temporary (3-6 months) |
The difference between a Big Five bank savings account (0.50%) and an online HISA (4.00%) is enormous. On $20,000, that is $100/year vs $800/year in interest.
Beating inflation with savings
For your savings to actually grow in real terms, the interest rate must exceed the inflation rate. With Canadian inflation averaging 2-3% in recent years:
| Savings Rate | Inflation | Real Return | $10,000 After 5 Years (real) |
|---|---|---|---|
| 1.00% | 2.50% | -1.50% | $9,272 |
| 3.00% | 2.50% | +0.50% | $10,253 |
| 4.00% | 2.50% | +1.50% | $10,773 |
| 5.00% | 2.50% | +2.50% | $11,314 |
At a 1% savings rate with 2.5% inflation, you are actually losing purchasing power. Use our inflation calculator to see how inflation erodes your savings over time.
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- Inflation Calculator — See how inflation affects your savings