Monthly Investment Calculator — Canada
See how a monthly investment grows over time at Canada's historical returns. No signup, no account needed.
Enter a monthly amount, a return rate between 0% and 100%, and a duration above zero (up to 50 years) to see results.
Where to invest in Canada
TFSA limit C$7k/yr (2026), RRSP up to 18% of income. TSX long-term ≈ 7–9%. S&P 500 via VFV or XUS. Platforms: Wealthsimple, Questrade, TD Direct Investing.
Returns are long-term historical averages, not guarantees - markets fall as well as rise. Invest for the long term and diversify.
The power of compounding
Investing $750 per month for 15 years at 8% p.a.:
- Future value: $261,259
- Total invested: $135,000
- Estimated gains: $126,259
That is roughly 1.9× your money - most of it from compounding. Scale the $750 to your own monthly amount, and remember that starting earlier matters more than investing more.
How to start - and stay - invested in Canada
- Automate a fixed monthly amount so you invest through good months and bad.
- Start small; you can raise the amount as your income grows.
- Favour low-cost, diversified funds over picking individual stocks.
- Stay invested through market dips - time in the market beats timing the market.
A real-data rate check: long-term returns in Canada (2026)
Our assumption of 8% per year is a deliberately conservative read on Canadian equity history. The S&P/TSX Composite Index — Canada's main stock benchmark — delivered an average annual return of about 9.3% over the 60 years from 1960 to 2020 (source: Wealth Awesome, S&P/TSX Composite Index Yearly Returns). We shave roughly a point off that historical average to account for fund fees (MERs) and the TSX's heavy concentration in financials and energy stocks. For context, the Bank of Canada's inflation-control target sits at a 2% midpoint (1–3% range), renewed December 2021 for the five years to the end of 2026.
Diversified all-in-one ETFs sold in Canada, such as Vanguard Canada's VEQT (All-Equity ETF Portfolio), have actually outrun this assumption recently — its fact sheet (as of July 31, 2026) shows a 5-year annualized NAV return of 13.39% and a since-inception (January 29, 2019) return of 14.26%. That window covers an unusually strong bull run, so we don't use it as our baseline; it simply shows that 8% is not an aggressive number.
A more realistic example: investing CAD 500 per month at an assumed 8% annual return, compounded monthly, over 20 years (240 months) works out to a future value of about CAD 296,473.61 — from CAD 120,000 in total contributions, that's roughly CAD 176,473.61 in investment growth. Past returns don't guarantee future results.
Frequently Asked Questions
How does a monthly investment work in Canada?
You invest a fixed amount each month into funds or an index. You buy more units when prices are low and fewer when high (cost averaging), and returns compound over time.
What return can I expect in Canada?
Long-term historical equity returns are around 8% per year here, though any single year can be sharply up or down. TFSA limit C$7k/yr (2026), RRSP up to 18% of income. TSX long-term ≈ 7–9%. S&P 500 via VFV or XUS. Platforms: Wealthsimple, Questrade, TD Direct Investing.
How much do I need to start investing in Canada?
Most platforms let you start small and increase later. Setting up an automatic monthly investment builds discipline and smooths out market timing.
Should I invest a lump sum or monthly in Canada?
Investing monthly spreads your entry across market ups and downs (cost averaging) and is easier to budget. A lump sum can do better in a steadily rising market but carries more timing risk.
Is investing better than a fixed deposit in Canada?
Investing targets higher long-term growth but carries market risk; fixed deposits are safer but usually return less. Many people hold both, matched to their time horizon.
Are investment gains taxed in Canada?
In Canada, capital gains and dividends from investments receive more favourable tax treatment than interest income from the CRA; holding investments inside a TFSA shelters growth from tax entirely.
Is 8% a realistic annual return to assume for a Canadian SIP?
Yes. It's slightly below the S&P/TSX Composite Index's roughly 9.3% average annual return from 1960 to 2020 (Wealth Awesome), which leaves room for fund fees and years of below-average performance. It's also well below the 13-14% annualized returns diversified Canadian equity ETFs like Vanguard's VEQT have posted in recent years (Vanguard Canada fact sheet, July 31, 2026).
Does an 8% return account for inflation?
No, 8% is a nominal (pre-inflation) return assumption. The Bank of Canada targets 2% annual inflation (1-3% range, midpoint target renewed December 2021 for the five years to end of 2026), so the real, inflation-adjusted growth of an 8%-per-year SIP is closer to 5-6% per year.
What return should I use instead of 8% if I want to be more conservative?
Some investors model 6-7% to build in an extra margin of safety, especially over shorter horizons (under 10 years) where market swings matter more. Over 20+ year horizons, the TSX's long-run historical average (~9.3%) suggests 8% is a reasonable middle-ground assumption, but past performance never guarantees future results.
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Sources
Return assumptions and rates are compiled from each country's central-bank publications, recognized market-index data and the typical offerings of major providers, reviewed for 2026 and subject to change. Returns are long-term historical averages, not guarantees. See our methodology and editorial policy for how we source and update this data.
Additional sources for this page
Wealth Awesome (2026): S&P/TSX Composite Index Yearly Returns, 1960-2020 average. Bank of Canada (target renewed December 2021, in effect through 2026): Inflation-Control Target. Vanguard Canada (as of July 31, 2026): VEQT All-Equity ETF Portfolio Fund Facts. See our methodology and editorial policy for how we source and update this data.