Savings Goal Calculator (Canadian)
Planning a sabbatical? Saving for a down payment on a house? What will it take to reach your financial goal? This calculator helps you find out. Enter in your savings plan and view graphically your financial results. Click the report button to get more information about your plan, and what you can do to help ensure that it is on track.
Savings Goal Calculator (Canadian) Definitions
- Savings goal
- The amount you wish to have in savings at the end of this savings plan.
- Target years to save
- The number of years you have to save.
- Amount currently saved
- Total you currently have saved toward this savings goal.
- Monthly savings
- The amount you will contribute each month to your savings. This calculator also assumes that you make your contribution at the beginning of each month.
- Expected rate of return
- This is the annually compounded rate of return you expect from your savings or investment. The actual rate of return is largely dependent on the type of investments you select. For example, the total return including dividends of the S&P/TSX Composite Index for the 10 year period from December 31, 2010 through December 31, 2020 was 5.9% (source spindices.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Expected annual inflation rate
- What you expect for the average long-term inflation rate.