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.
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.
Average investment returns by asset class in Canada
| Asset Class | 20-Year Avg. Return | Risk Level | Best For |
|---|---|---|---|
| Canadian Equities (S&P/TSX) | 7–9% | High | Long-term growth (10+ years) |
| US Equities (S&P 500 in CAD) | 10–12% | High | Long-term growth, diversification |
| Global Equities (MSCI World) | 8–10% | High | Broad diversification |
| Canadian Bonds | 3–5% | Low | Capital preservation, income |
| GICs | 2–4% | Very Low | Short-term, guaranteed |
| High-Interest Savings | 1–3% | None | Emergency fund |
| Balanced Portfolio (60/40) | 5–7% | Medium | Moderate risk tolerance |
Returns above are nominal (before inflation). Subtract 2–3% for real returns.
How much to invest monthly to reach your goal
| Monthly Investment | 10 Years (7%) | 20 Years (7%) | 25 Years (7%) | 30 Years (7%) |
|---|---|---|---|---|
| $250 | $43,330 | $130,593 | $202,663 | $304,894 |
| $500 | $86,659 | $261,186 | $405,326 | $609,788 |
| $1,000 | $173,318 | $522,372 | $810,652 | $1,219,576 |
| $1,500 | $259,977 | $783,558 | $1,215,978 | $1,829,364 |
| $2,000 | $346,636 | $1,044,743 | $1,621,305 | $2,439,152 |
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 Nominal | Real Value (2.5% Inflation) | Purchasing Power Lost |
|---|---|---|---|
| 5 years | $100,000 | $88,385 | 11.6% |
| 10 years | $100,000 | $78,120 | 21.9% |
| 20 years | $100,000 | $61,027 | 39.0% |
| 30 years | $100,000 | $47,674 | 52.3% |
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 completely tax-free. Best for most Canadians as the first investment account. The 2025 annual limit is $7,000 with a lifetime maximum of $102,000 (if eligible since 2009). 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. Best for high-income earners who expect to be in a lower tax bracket in retirement. The 2025 limit is 18% of earned income up to $32,490. See the RRSP calculator.
FHSA – First Home Savings Account
Contributions are tax-deductible and withdrawals for a first home are tax-free — the best of both worlds. 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. Capital gains are 50% taxable, Canadian eligible dividends receive a tax credit, and interest is fully taxable. Use after maxing registered accounts.
Investment strategies for Canadians
Asset allocation by age and risk tolerance
A common guideline: hold your age in bonds (or fixed income), the rest in equities. A 30-year-old would hold 70% equities and 30% bonds. More aggressive investors use 100% equities during accumulation. Here is a more detailed framework:
| Age | Conservative | Moderate | Aggressive |
|---|---|---|---|
| 20–30 | 60% equity / 40% bonds | 80% equity / 20% bonds | 100% equity |
| 30–40 | 50% equity / 50% bonds | 70% equity / 30% bonds | 90% equity / 10% bonds |
| 40–50 | 40% equity / 60% bonds | 60% equity / 40% bonds | 80% equity / 20% bonds |
| 50–60 | 30% equity / 70% bonds | 50% equity / 50% bonds | 70% equity / 30% bonds |
| 60–70 | 25% equity / 75% bonds | 40% equity / 60% bonds | 60% equity / 40% bonds |
| 70+ | 20% equity / 80% bonds | 30% equity / 70% bonds | 50% equity / 50% bonds |
Your actual allocation should also consider your income stability, other assets (like a pension or real estate), time horizon, and personal comfort with market volatility. Use our retirement calculator to model different allocation scenarios.
Index investing
Low-cost index ETFs have outperformed the majority of actively managed mutual funds over 10+ year periods. Canadian all-in-one ETFs like VGRO (80/20), VBAL (60/40), and XEQT (100% equity) provide global diversification in a single fund with MERs under 0.25%. Compare management fees with our MER calculator.
Dollar-cost averaging
Investing a fixed amount at regular intervals (e.g., $500 every payday) smooths out market volatility. You automatically buy more shares when prices are low and fewer when prices are high.
Worked example: Suppose you invest $500 per month into a Canadian equity index ETF over 6 months with fluctuating prices:
| Month | ETF Price | Amount Invested | Units Purchased |
|---|---|---|---|
| January | $50.00 | $500 | 10.00 |
| February | $45.00 | $500 | 11.11 |
| March | $40.00 | $500 | 12.50 |
| April | $42.00 | $500 | 11.90 |
| May | $48.00 | $500 | 10.42 |
| June | $52.00 | $500 | 9.62 |
| Total | $3,000 | 65.55 units |
- Average price per unit purchased: $3,000 ÷ 65.55 = $45.77
- Simple average of monthly prices: ($50 + $45 + $40 + $42 + $48 + $52) ÷ 6 = $46.17
- Portfolio value at month 6: 65.55 × $52.00 = $3,408.60
By investing a fixed dollar amount each month, you purchased more units when prices were low (March) and fewer when prices were high (June). Your average cost per unit ($45.77) was lower than the simple average price ($46.17), resulting in a built-in advantage during volatile markets. This approach removes the pressure of trying to time the market.
The power of starting early
| Scenario | Monthly Amount | Years Investing | Total Contributed | Portfolio at 7% |
|---|---|---|---|---|
| Start at 25 | $500 | 40 | $240,000 | $1,319,496 |
| Start at 35 | $500 | 30 | $180,000 | $609,788 |
| Start at 35 | $1,085 | 30 | $390,600 | $1,321,189 |
Starting 10 years earlier with $500/month produces nearly the same result as investing $1,085/month for 30 years. Time in the market is the most powerful factor.
Rule of 72 — doubling time reference
| Annual Return | Years to Double |
|---|---|
| 4% | 18 years |
| 5% | 14.4 years |
| 6% | 12 years |
| 7% | 10.3 years |
| 8% | 9 years |
| 10% | 7.2 years |
| 12% | 6 years |
Related calculators
- Compound Interest Calculator — Compound interest with custom compounding frequencies
- RRSP Calculator — Project tax-deferred retirement savings growth
- TFSA Calculator — Estimate tax-free investment growth
- FHSA Calculator — Plan your tax-free first home savings
- GIC Calculator — Compare guaranteed investment returns
- Dividend Calculator — Calculate dividend income from stocks
- Retirement Calculator — Plan how much you need to retire
- MER Calculator — See how management fees impact returns
- Simple Interest Calculator — Compare simple vs compound growth
Start investing with a $25 bonus
Ready to turn these projections into reality? You can start investing commission-free with as little as $1. Follow our step-by-step guide to buying your first ETF and get a $25 bonus when you open an account.