The value of your savings can be affected by both taxes and inflation, especially if you are saving for a long-term goal. Use this calculator to determine how much your investment or savings may be worth with this in mind. Click the "View Report" button to get more information and an indicative year-by-year savings schedule.
Savings, Taxes, and Inflation Calculator (Canadian)
Savings, Taxes, and Inflation Calculator (Canadian) Definitions
- The number of years you have to save.
- Monthly contributions
- The amount you will contribute each month towards your goal. This calculator assumes that you make your contribution at the beginning of each month.
- Amount currently invested
- Total you have saved to date to be included in this analysis.
- Expected rate of return
- This is the annually compounded rate of return you expect from your investments before taxes. The actual rate of return is largely dependent on the type of investments you select. For example, for the last thirty years the average annual rate of return for the TSX is about 10%. 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.
- Marginal tax rate
- Your marginal income tax rate.
- Expected inflation rate
- What you expect for the average long-term inflation rate.