Savings Goal Calculator

A common guideline is to save at least 20% of your take-home pay — the '20' in the 50/30/20 rule. But even $100–$200/month invested consistently over 10–20 years creates meaningful wealth through compound growth. If 20% feels impossible right now, start with what you can manage and increase it when your income grows. Automating the transfer on payday is the most reliable way to stay consistent.

In 2026, Canadian high-interest savings accounts (HISAs) offer roughly 3–4.5% APY. GICs offer 4–5% for 1–5 year terms. A balanced TFSA portfolio of index ETFs has historically returned 5–7% annually over long periods. Use a conservative rate (3–4%) for short-term goals and a moderate rate (5–6%) for long-term goals. Avoid inflating the rate to make the goal look easier — that leads to undersaving.

The 50/30/20 budgeting rule splits after-tax income into three categories: 50% to needs (housing, food, utilities, transit), 30% to wants (restaurants, subscriptions, entertainment), and 20% to financial goals (emergency fund, RRSP/TFSA contributions, debt repayment). It's a starting framework, not a rigid rule — adjust the percentages to fit your cost of living and situation.

Most advisors recommend 3–6 months of essential living expenses — rent or mortgage, groceries, utilities, insurance, and debt minimums. Stable salaried job with dual income? Three months is fine. Self-employed, single income, or working in a volatile field? Aim for 6–12 months. Keep it in a liquid, accessible HISA — not locked in a GIC or invested where it might lose value when you need it most.

For short-term goals (under 5 years): a TFSA in a high-interest savings account for tax-free, flexible growth at 3–4.5%. For medium-term goals (5–10 years): a TFSA with GICs or a balanced ETF. For long-term goals (10+ years): a TFSA or RRSP invested in low-cost index funds. Always maximize your TFSA contribution room first — the tax-free growth and flexible withdrawals make it the most versatile savings account for Canadians.