Enter an amount, rate, term and compounding frequency to see what a GIC is worth at maturity and how much interest it earns each year. For rates to plug in, see the best GIC rates page; the GIC hub lists every GIC guide.
How this GIC calculator works
The calculator uses the compound interest formula:
A = P × (1 + r/n)^(n×t)
- A = maturity value
- P = principal (amount invested)
- r = annual interest rate, as a decimal
- n = number of times interest compounds per year
- t = term in years
More frequent compounding pays slightly more, because interest starts earning interest sooner. Many GICs compound annually; some 1-year GICs pay simple interest at maturity. The product’s terms say which.
Compounding frequency compared
A $10,000 GIC at 4.50% for 5 years:
| Compounding | Maturity value | Total interest |
|---|---|---|
| Annually | $12,461.82 | $2,461.82 |
| Semi-annually | $12,492.03 | $2,492.03 |
| Quarterly | $12,507.51 | $2,507.51 |
| Monthly | $12,517.96 | $2,517.96 |
| Daily | $12,523.05 | $2,523.05 |
The difference between annual and daily compounding here is $61.23 over five years.
Worked example: what $10,000 earns
Simple interest, by rate and term
| Rate | 90 days | 6 months | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|---|---|
| 3.0% | $74 | $150 | $300 | $600 | $900 | $1,500 |
| 3.5% | $86 | $175 | $350 | $700 | $1,050 | $1,750 |
| 4.0% | $99 | $200 | $400 | $800 | $1,200 | $2,000 |
| 4.5% | $111 | $225 | $450 | $900 | $1,350 | $2,250 |
| 5.0% | $123 | $250 | $500 | $1,000 | $1,500 | $2,500 |
| 5.5% | $136 | $275 | $550 | $1,100 | $1,650 | $2,750 |
90-day figures use principal × rate × (90/365); 6-month figures use half a year.
Annual compounding, balance at the end of each year
| Rate | 2 years | 3 years | 4 years | 5 years | Interest over 5 years |
|---|---|---|---|---|---|
| 3.0% | $10,609 | $10,927 | $11,255 | $11,593 | $1,593 |
| 3.5% | $10,712 | $11,087 | $11,475 | $11,877 | $1,877 |
| 4.0% | $10,816 | $11,249 | $11,699 | $12,167 | $2,167 |
| 4.5% | $10,920 | $11,412 | $11,925 | $12,462 | $2,462 |
| 5.0% | $11,025 | $11,576 | $12,155 | $12,763 | $2,763 |
| 5.5% | $11,130 | $11,742 | $12,388 | $13,070 | $3,070 |
These are pre-tax figures. In a TFSA the interest is kept in full; in an RRSP it is taxed only on withdrawal; in a non-registered account it is taxed every year at your marginal rate, even on a multi-year GIC that pays only at maturity. The guide to how GIC interest is taxed shows the after-tax amounts.
What a $10,000 GIC suits
- A known future expense. A GIC whose term ends when the money is needed (tuition, a car, a planned renovation) locks in the return for that period.
- Money between decisions. A short GIC (90 days to 6 months) can hold savings for a down payment while plans firm up.
- Not an emergency fund. A non-redeemable GIC cannot be cashed early, which is why emergency savings usually sit in a HISA. The GIC vs HISA comparison covers the trade-off.
Using the result
- Choosing a term. The calculator shows what each term pays at a given rate; whether to lock money up that long is a separate question. Cashable vs non-redeemable GICs covers what early access costs.
- Splitting a sum. Running the calculator once per term shows what a GIC ladder earns in total.
- Market-linked and escalating-rate GICs don’t follow the fixed-rate formula. Market-linked GICs explained shows how their return is worked out.
- Safety. The maturity value is insured by CDIC up to $100,000 per category at member institutions; are GICs safe? explains the limits.
Related calculators
- Compound interest calculator: compound growth on any investment
- TFSA calculator: tax-free growth inside a TFSA
- RRSP calculator: tax-deferred growth and the refund
- Investment calculator: GIC returns against other investments
- Inflation calculator: whether a GIC rate keeps up with prices
- FHSA calculator: saving for a first home in an FHSA
Beyond GICs
A GIC guarantees its return; a diversified ETF portfolio can grow more over long periods but can also fall in value along the way. How to start investing in Canada covers the first steps.
Sources
The figures and rules on this page come from these sources, last checked against them on October 24, 2026. How we check facts.
- cdic.ca: What's covered — CDIC