About the Canada GIC Calculator
This GIC calculator shows how much a Guaranteed Investment Certificate will be worth when it matures. Enter the amount, the posted annual rate, the term in months and how the interest is paid or compounded, and it returns the maturity value, total interest, the effective annual yield and — for a non-registered GIC — the tax you would owe on the interest.
Canadian banks and credit unions usually quote GIC rates as simple annual rates. Terms under a year normally pay simple interest at maturity, while multi-year GICs typically compound annually (some offer semi-annual or monthly compounding, or pay interest out each year instead). Compare two offers by switching the compounding option: the effective annual yield puts them on the same footing.
Interest earned in a non-registered GIC is fully taxable as income at your marginal rate, and on a compound GIC you report the accrued interest every year even though you only receive it at maturity. Holding the GIC inside a TFSA, RRSP or FHSA shelters it from tax. Eligible GICs at a CDIC member institution are insured up to $100,000 per insured category, including principal and interest.
With the default inputs, the maturity value is $12,166.53. Change any value above to recalculate instantly.
How to use the canada gic calculator
- 1Enter the amount you plan to put in the GIC.
- 2Enter the posted annual rate and the term in months.
- 3Choose how the interest is compounded or paid — check the GIC’s terms.
- 4Pick whether it is held in a TFSA/RRSP/FHSA or a taxable account.
- 5Compare the effective yield across offers, not just the posted rate.
Formula and method
For a compounding GIC the maturity value is the principal times (1 + r/k) raised to the number of compounding periods, where r is the posted annual rate, k the compounding periods per year and t the term in years. If the term does not divide evenly into compounding periods, the final partial period earns simple interest, which is how most issuers handle odd terms such as 18 months on an annual-compounding GIC. Simple-interest GICs (and short terms) pay P × r × t.
The effective annual yield is (A ÷ P)^(12 ÷ months) − 1, which lets you compare offers with different compounding. Tax on a non-registered GIC is the interest times your marginal rate; the timing of that tax (yearly accrual versus maturity) is not modelled.
- A
- Maturity value
- P
- Amount invested
- r
- Posted annual interest rate
- k
- Compounding periods per year (1, 2 or 12)
- t
- Term in years (months ÷ 12)
Worked examples
$10,000 five-year GIC at 4%
Compounding annually, $10,000 at 4% grows to $12,166.53 after five years — $2,166.53 of interest. With annual compounding the effective yield equals the posted 4%.
1-year GIC: simple vs monthly compounding
With monthly compounding, $25,000 at 3.5% for a year earns $889.17 (an effective 3.557%). A simple-interest one-year GIC at the same rate would pay $875.
18-month GIC in a non-registered account
Semi-annual compounding over three periods turns $5,000 at 3.8% into $5,290.45. At a 30% marginal rate about $87.14 is tax, leaving $203.32 of after-tax interest.
Frequently asked questions
How is GIC interest calculated?+
Most multi-year GICs compound annually: each year’s interest is added to the balance and earns interest the next year. Short-term GICs usually pay simple interest at maturity. Multiply the principal by (1 + rate) for each year of the term to estimate the value.
Is GIC interest taxable in Canada?+
Yes. GIC interest in a non-registered account is taxed as income at your full marginal rate. For compound GICs you must report the accrued interest each year, even before it is paid. GICs held in a TFSA, RRSP or FHSA are sheltered.
Are GICs insured by CDIC?+
Eligible GICs at a CDIC member institution are covered up to $100,000 per insured category (for example, in your own name, joint, in a TFSA or in an RRSP), including principal and interest. Credit union deposits are covered by provincial insurers instead.
Can I cash a GIC early?+
Non-redeemable GICs cannot normally be cashed before maturity except in hardship cases. Redeemable or cashable GICs can, but usually pay a lower rate and may pay reduced interest if redeemed early.
What is the difference between a GIC and a high-interest savings account?+
A GIC locks your money in for a fixed term at a guaranteed rate, while a savings account lets you withdraw any time but its rate can change. GICs usually pay more when you commit for longer.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.