Investment Calculator — Canada
Combine an existing investment with a monthly PAC and see what it could build — including the tax estimate if you cash out.
Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources
If you sold everything at the end (one tax year, taxable account): estimated tax $5,614 — you keep $86,468.
| Year | Invested | Value | Gain |
|---|---|---|---|
| 1 | $6,000 | $6,266 | $266 |
| 2 | $12,000 | $13,053 | $1,053 |
| 3 | $18,000 | $20,403 | $2,403 |
| 4 | $24,000 | $28,363 | $4,363 |
| 5 | $30,000 | $36,983 | $6,983 |
| 6 | $36,000 | $46,319 | $10,319 |
| 7 | $42,000 | $56,430 | $14,430 |
| 8 | $48,000 | $67,381 | $19,381 |
| 9 | $54,000 | $79,240 | $25,240 |
| 10 | $60,000 | $92,083 | $32,083 |
The PAC: Canada's set-and-forget wealth machine
Every Canadian brokerage offers it: a pre-authorized contribution that pulls the same amount from your chequing account each month and buys index units without asking how you feel about markets that day. Cheap months buy more units, expensive months buy fewer, and after twenty years the average price you paid looks remarkably sensible.
This calculator runs that plan across the accounts that actually matter — a TFSA (2026 room: $7,000), an RRSP (2026 limit: $33,810), or a non-registered account, each with its own tax story. (Indian investors know the identical monthly strategy as a SIP — same math, different acronym.)
What the calculator assumes
Contributions land at the start of each month and compound at the annual return divided by twelve. The 8% default is the S&P/TSX Composite's long-run total return with dividends reinvested — trim it to be conservative. The MER you enter comes off the return before anything compounds, and it matters: a 2% Canadian mutual-fund fee can quietly consume a third or more of a long portfolio, which is the best argument for cheap index ETFs ever written.
Where the tax story happens
TFSA growth and withdrawals are entirely tax-free. RRSP contributions defer tax now but withdrawals are fully taxable as income later. In a non-registered account, half of your realized capital gains are added to your income at your marginal rate — Canada's 50% inclusion rate, which survived the cancelled 2024 proposal to raise it. The SWP calculator applies the right treatment per account when you plan withdrawals.
Related reading
Frequently asked questions
Is a PAC the same as a SIP?
Functionally yes. PAC — pre-authorized contribution — is what Canadian platforms call the automatic monthly purchase; SIP (systematic investment plan) is the Indian-English term for the same habit. The projection math is identical.
What return should I assume for the TSX?
The S&P/TSX Composite's long-run nominal total return, dividends included, has been roughly 8% a year. That's a historical average, not a promise — use a lower figure to be conservative, and subtract your fund's MER.
TFSA or RRSP first for a monthly SIP?
The classic rule of thumb: TFSA if you expect a similar or higher tax rate in retirement, RRSP if you're in a high bracket now and expect a lower one later. Many Canadians fill the TFSA's $7,000 annual room first for flexibility, since withdrawals restore room the following year.
Did Canada's capital gains inclusion rate go up?
No. The 2024 proposal to raise the inclusion rate to two-thirds was deferred and then formally cancelled in March 2025 — it never became law. Half of a realized gain is included in taxable income, which is what this site's SWP calculator applies.
Tax figures for 2026 last verified 3 July 2026 against the official source — how we calculate.
GrowThenDraw is not a registered dealer or adviser in any Canadian jurisdiction. All results are educational estimates only — consult a registered advisor and a tax professional before acting.
Relevant bodies in this jurisdiction: CIRO / provincial securities regulators, CRA (tax).