Compound Growth
No matter what you’re saving for, compound growth can help you get there faster. The sooner you start your plan, and the longer you stick with it, have a great deal of impact on your results. Use this calculator to see how compounding can affect your savings, and how interest on your interest can really add up!
See the Building your Portfolio section to find out more about maximizing your investment returns through tax deferred growth and strategies to reduce taxes.
Contact your nearest Investors Group Consultant to find out how The PlanTM can help you fulfill your goals for life.
Definitions
- Investment Amount
- The amount of your initial investment.
- Annual Interest Rate
- The annual interest rate for your investment. The actual rate of return is largely dependant on the type of investments you select. For example, the average annual rate of return for the TSX has been 11% for the last 20 years. Savings accounts at a bank or credit union can 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.
- Years
- Number of years you plan to leave this investment untouched.
- Yearly APY
- Annual percentage yield received if your investment is compounded yearly.
- Quarterly APY
- Annual percentage yield received if your investment is compounded quarterly.
- Monthly APY
- Annual percentage yield received if your investment is compounded monthly.
- Daily APY
- Annual percentage yield received if your investment is compounded daily.
*Assumption: The figures represented under Return in Dollars do not take into account any income taxes payable on these amounts.
Information and interactive calculators are made available to you as illustrative tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
