Compound interest guide
The formula
Without contributions:
A = P × (1 + r/n) ^ (n×t)
P = principal · r = annual rate · n = compounds/yr · t = years
The Rule of 72
Divide 72 by your annual rate to estimate years to double your money. At 4% → 18 years. At 6% → 12 years. At 9% → 8 years.
Compounding frequency
Daily (365×/yr)Highest yield
Monthly (12×/yr)Most savings accounts
Quarterly (4×/yr)Some GICs & bonds
Semi-annual (2×/yr)Government bonds
Annually (1×/yr)Simple GICs
FAQ
What is compound interest?
Interest calculated on both your principal and the accumulated interest from previous periods — causing exponential growth over time.
TFSA vs RRSP for compounding?
TFSA growth is completely tax-free — ideal for long-term compounding. RRSP growth is tax-deferred; you pay tax on withdrawal but get a deduction now.
What are good Canadian GIC rates in 2026?
Competitive GIC rates range from 3%–5% depending on term. Online banks and credit unions often beat the Big Six.
Is my data stored?
No — everything runs in your browser. Nothing is uploaded or saved anywhere.
