Savings Goal Calculator
How much a month, or how long it takes.
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Questions
What return should I assume?
Match it to the timeline. Under a year, a high-interest savings account at 2–4%. One to three years, a GIC or money-market fund at 3–5%. Three to ten years, a balanced portfolio at 4–6%. Ten years or more, mostly equities at 6–8%. Assuming an equity return on a two-year goal is how savings plans fail.
Why not put short-term savings in the market?
Because there is no time to recover from a drawdown. A house deposit needed in two years cannot survive a 20% fall — you would have to either delay the purchase or crystallise the loss. Accepting 4% in a GIC is not timidity, it is matching the risk to the deadline.
Which account should I use in Canada?
A TFSA for most goals — growth and withdrawals are entirely tax-free, and withdrawn room comes back the following calendar year. For a first home specifically, the FHSA is better still: you get the RRSP-style deduction going in and tax-free withdrawal coming out, which no other account offers. A plain taxable account means paying tax on the interest annually, cutting a 4% return closer to 2.5%.
What is the single most effective habit?
An automatic transfer scheduled for the day after payday. It removes the monthly decision entirely, which is the part that fails. Saving whatever is left at the end of the month almost never works, because there is rarely anything left.
Does this account for inflation?
No. If your goal is a fixed dollar amount — paying off a specific debt, say — that is fine. If it is a real-world purchase like a house deposit, the target itself will rise over time, so either build that in by raising the goal or subtract expected inflation from the return you enter.
About savings goal
Two ways to ask the same question
A savings goal has four moving parts: what you have, what you want, how long you have, and what return you earn. Fix any three and the fourth follows. This calculator solves for either of the two you usually control — how much to put away each month, or how long it will take at the amount you can manage.
Match the account to the timeline
| Timeline | Where to keep it | Realistic return |
|---|---|---|
| Under 1 year | High-interest savings account | 2–4% |
| 1–3 years | GIC or money-market fund | 3–5% |
| 3–10 years | Balanced portfolio | 4–6% |
| 10+ years | Mostly equities | 6–8% |
The mistake that costs people goals is putting short-term money in the market. A house deposit needed in two years cannot survive a 20% drawdown, because there is no time to recover. Accepting 4% in a GIC is not being timid; it is matching the risk to the deadline.
Use the right account wrapper
For most Canadian savings goals a TFSA is the default: growth and withdrawals are entirely tax-free, and withdrawn room comes back the following calendar year. For a first home specifically, the FHSA is better still — you get the RRSP-style deduction going in and tax-free withdrawal coming out, which no other account offers.
Keeping a savings goal in a plain taxable account means paying tax on the interest every year, which quietly cuts a 4% return closer to 2.5% at a typical marginal rate.
Automate it
A transfer scheduled for the day after payday is the single most reliable savings mechanism there is, because it removes the monthly decision entirely. Saving whatever is left at the end of the month almost never works — there is rarely anything left.
Related
See how the growth compounds with the compound interest calculator, or check your RRSP room with the RRSP calculator.