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Investment Calculator Canada (2026): Growth and Inflation Estimator

Updated

Initial Investment
Monthly Contribution
Expected Annual Return
Annual Inflation Rate
Years to Invest
Nominal Future Value
Initial Investment
Total Contributions (incl. initial)
Investment Growth
Inflation-Adjusted Value

Project how your investment portfolio will grow over time. Enter your starting amount, monthly contributions, expected return, and inflation rate. The calculator shows both nominal and inflation-adjusted (real) values to help you plan with purchasing power in mind.

This calculator owns one job: projecting a portfolio with a starting balance and monthly contributions, and showing the result in today’s dollars after inflation. For the mechanics of compounding itself (the formula, compounding frequency, simple vs compound interest), use the compound interest calculator; for choosing the monthly amount, how much to invest each month. All our calculators are listed on the investing basics hub.

How the investment calculator works

This calculator uses monthly compounding to project your portfolio growth. Each month, your existing balance grows by 1/12 of the annual return rate, and your monthly contribution is added. The inflation-adjusted value shows what your future portfolio would be worth in today’s dollars.

Formula: Your balance compounds as $FV = P(1 + r/12)^{12t} + PMT \times \frac{(1 + r/12)^{12t} - 1}{r/12}$, then the real value divides by $(1 + i)^t$ where $i$ is the annual inflation rate.

Long-term return assumptions by asset class

There is no single “average return” to enter above; financial planners in Canada use the Projection Assumption Guidelines that FP Canada and the Institute of Financial Planning publish each spring. The 2026 figures are nominal (before inflation) and before fees:

Asset classAssumed annual returnRisk levelTypical use
Canadian equities6.3%HighLong-term growth (10+ years)
U.S. equities6.4%HighLong-term growth, diversification
International developed-market equities6.6%HighBroad diversification
Emerging-market equities7.5%Very highDiversification
Fixed income (bonds)3.2%Low to mediumCapital preservation, income
Short-term investments (savings accounts, short GICs)2.4%Very lowEmergency fund, short-term goals
60/40 mix of Canadian equities and fixed income5.1%MediumModerate risk tolerance

The same guidelines assume 2.1% inflation, so subtracting that gives an approximate real return. Fees come off the top as well: the guidelines note that fees typically range from 0.5% to 2.5% depending on how the money is managed. Actual returns vary widely from year to year.

How much to invest monthly to reach your goal

Monthly Investment10 Years (7%)20 Years (7%)25 Years (7%)30 Years (7%)
$250$43,271$130,232$202,518$304,993
$500$86,542$260,463$405,036$609,985
$1,000$173,085$520,927$810,072$1,219,971
$1,500$259,627$781,390$1,215,108$1,829,956
$2,000$346,170$1,041,853$1,620,143$2,439,942

Assumes 7% annual return compounded monthly with no initial investment.

The impact of inflation on investments

Inflation is often called the “silent tax” on wealth. Even at a modest 2.5% annual rate, inflation significantly erodes purchasing power over time:

Time Period$100,000 NominalReal Value (2.5% Inflation)Purchasing Power Lost
5 years$100,000$88,38511.6%
10 years$100,000$78,12021.9%
20 years$100,000$61,02739.0%
30 years$100,000$47,67452.3%

This is why earning returns above inflation is critical for long-term wealth building.

Investing in registered vs non-registered accounts

TFSA – Tax-Free Savings Account

All growth and withdrawals are tax-free. The 2026 annual limit is $7,000 and total room for someone eligible every year since 2009 is $109,000. Use our TFSA calculator to project tax-free growth.

RRSP – Registered Retirement Savings Plan

Contributions are tax-deductible and growth is tax-deferred until withdrawal, which favours people who expect a lower tax rate in retirement. The 2026 limit is 18% of the previous year’s earned income, up to $33,810. See the RRSP calculator.

FHSA – First Home Savings Account

Contributions are tax-deductible and withdrawals for a first home are tax-free. Annual limit of $8,000, lifetime maximum of $40,000. See the FHSA calculator.

Non-Registered Account

No contribution limits, but investment income is taxable. 50% of capital gains are taxable, Canadian eligible dividends receive a tax credit, and interest is fully taxable. Usually used after registered room is filled; which holdings go where is covered in asset location.

Investment strategies for Canadians

Asset allocation

The mix of stocks and bonds is one of the biggest influences on the return to enter above: a balanced portfolio is expected to return less than an all-equity one, with smaller swings. The mix that suits each age and risk tolerance is covered in asset allocation by age; the retirement calculator models the drawdown years.

Index investing

Low-cost index ETFs track a market rather than trying to beat it, which keeps fees low. Canadian all-in-one ETFs such as VGRO (80/20), VBAL (60/40) and XEQT (100% equity) provide global diversification in a single fund; fees are compared in best all-in-one ETFs. Compare management fees with our MER calculator.

Dollar-cost averaging

This calculator assumes the same contribution every month. Whether it is better to invest a large sum at once or feed it in over time is a separate question, answered with examples on the dollar-cost averaging page.

Starting early

Starting 10 years earlier matters more than doubling the contribution: $500 a month for 40 years at 7% grows to $1,312,407, while starting 10 years later takes about $1,076 a month to reach the same amount. The compound interest calculator explains why, and the Rule of 72 calculator gives a quick doubling-time estimate for any return.

Putting a projection into practice

A projection only becomes real once the contributions start. Automating your investments makes the monthly amount happen on its own, and if you have no account yet, investing for beginners covers opening one.

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Sources

The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 25, 2026. How we check facts.