Compound Interest Calculator — Canada

Project your after-tax returns with the 50% capital gains inclusion rate. Free compound interest calculator for Canadian investors.

Tax Considerations for Canadian Investors

Inclusion Rate

50% of capital gains are taxable, then taxed at your marginal rate. The proposed increase to 66.67% was cancelled in March 2025.

Effective Rate

Ranges from ~24% (Saskatchewan) to ~27% (Newfoundland) depending on province. This calculator uses ~26.5% average.

TFSA & RRSP

TFSA contributions grow completely tax-free. RRSP contributions are deductible and grow tax-deferred.

Disclaimer: This is a simplified calculation. Actual taxes depend on your personal situation, annual exemptions, and when gains are realized. Consult a tax advisor for accurate advice.

Frequently Asked Questions

What return rate should I use?

Historical global stock market returns average 7-10% per year. Use 7% for a conservative estimate that accounts for inflation.

Does this calculator account for inflation?

No, results are shown in nominal terms. Subtract 2-3% from your return rate for a rough inflation-adjusted estimate.

How accurate is this calculation?

This is a simplified estimate. Actual taxes depend on your personal situation, holding period, and local regulations. Consult a tax advisor for precise numbers.

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