GIC calculator
Enter the amount, the rate, the term and how the interest compounds. You get the maturity value, the interest, the effective annual rate and the after-tax interest.
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How much does a GIC pay at maturity?
Multiply the amount by one plus the rate for each year if interest compounds annually. $10,000 at 4.5% compounded annually for 3 years grows to $11,411.66, which is $1,411.66 of interest. Paid as simple interest it would be $11,350.00, and compounded monthly $11,442.48. At a 30% tax rate in a non-registered account the interest left is $988.16.
Why we built this calculator
A GIC quote tells you a rate, but two GICs at the same rate pay differently if one pays simple interest at maturity and the other compounds. This calculator shows the maturity value for each way of paying interest, and the effective annual rate, so you can compare offers on the same footing.
It also shows what is left after tax in a non-registered account, where the interest is taxed as ordinary income. Inside a TFSA the interest is tax-free, so check your room with the TFSA room calculator. To find your own tax rate, use the marginal tax rate calculator.
It runs in your browser. Nothing you enter is sent anywhere, and there is no sign-up.
How it works
With annual compounding, the value after t years is the amount times (1 + rate)^t; with compounding n times a year it is the amount times (1 + rate ÷ n)^(n × t), and with simple interest paid at maturity it is the amount times (1 + rate × years). For $10,000 at 4.5% for three years, annual compounding gives $11,411.66 ($1,411.66 of interest), simple interest gives $11,350.00 and monthly compounding gives $11,442.48. The effective annual rate, (1 + rate ÷ n)^n − 1, is the single yearly rate that gives the same result, which is the fair way to compare GICs. In a non-registered account the interest is taxable, and the after-tax figure applies your marginal rate to all the interest and ignores when the tax falls due; in a TFSA the interest is tax-free. Deposits held in one name are combined for a CDIC coverage limit of $100,000.
How to use it
- Enter the amount, the annual rate and the term in years.
- Choose how the interest is paid: compounded annually, semi-annually or monthly, or simple interest at maturity.
- Choose the type of account, and your marginal tax rate if the account is not a TFSA.
- Read the value at the end, the interest, the effective annual rate and the after-tax interest.
- Compare offers by their effective annual rate.
What the calculation assumes
What goes into the answer, and what does not.
| Aspect | What happens |
|---|---|
| Rate | Fixed for the whole term |
| Compounding | As you choose; the effective annual rate lets you compare |
| Tax | Applied to all the interest at your marginal rate in a non-registered account; none in a TFSA |
| Timing of tax | Not modelled |
| Deposit insurance | CDIC covers eligible deposits up to the limit; check the current rules |
| Advice | General information, not financial advice: check the figures with your lender, bank or an adviser |
| Privacy | Everything is worked out in your browser; nothing you enter is uploaded or saved |
When to use it
- Comparing two GIC offers with different compounding
- Working out what a 1, 3 or 5 year GIC will be worth
- Seeing the after-tax return in a non-registered account
- Comparing a GIC with a savings account
Problems you may run into
Most differences come from the inputs and from the meaning of the numbers.
| What you see | Likely cause | What to do |
|---|---|---|
| The bank's figure is different | A different compounding rule, or interest paid out | Use the offer's terms; this is a close estimate |
| After-tax interest looks low | A high marginal tax rate | Consider a TFSA or RRSP where it fits |
| Two GICs with the same rate | They compound differently | Compare their effective annual rates |
| Redeemable or cashable GICs | They may pay less | Check the terms for early withdrawals |
| Amounts over the insured limit | Coverage has a limit per category | Check the CDIC page for how deposits are combined |
Mistakes it helps you avoid
- Comparing the stated rate of two GICs that compound differently.
- Ignoring tax on a non-registered GIC.
- Putting more than $100,000 in one name at one institution without checking deposit insurance.
- Forgetting that an early withdrawal may not be allowed on a non-redeemable GIC.
How the maturity value is worked out
Simple interest grows in a straight line. Compound interest grows by a factor each compounding period.
simple interest: value = principal × (1 + rate × years)compound interest: value = principal × (1 + rate ÷ n) ^ (n × years)n = 1 annually, 2 semi-annually, 12 monthlyeffective annual rate = (1 + rate ÷ n) ^ n − 1after-tax interest = interest × (1 − marginal tax rate)
The effective annual rate is the single yearly rate that gives the same result as the compounding, which is the fair way to compare GICs. The after-tax figure applies your marginal rate to all the interest and ignores when the tax falls due. CDIC's page says deposits held in one name are combined for a coverage limit of $100,000 and lists GICs among eligible deposits; it does not state the other details, so check cdic.ca.
Worked example: $10,000 at 4.5% for 3 years
You buy a 3-year GIC for $10,000 at 4.5% a year, and your marginal tax rate is 30%.
- Simple interest at maturity: $10,000 × (1 + 4.5% × 3)$11,350.00
- Compounded annually: $10,000 × 1.045^3$11,411.66
- Compounded monthly$11,442.48
- Interest, compounded annually$1,411.66
- After 30% tax in a non-registered account$988.16
Compounded annually the GIC is worth $11,411.66, of which $988.16 of interest remains after tax.
The effective annual rate is 4.500% annually, 4.551% semi-annually and 4.594% monthly.
Terms on this page
- GIC
- Guaranteed investment certificate: a deposit that pays a set rate for a set term.
- Effective annual rate
- The yearly rate that is equivalent to the stated rate after compounding.
Common questions
How is GIC interest calculated?
Either as simple interest, principal times rate times years, or compounded, where interest earns interest each period. Check which your GIC uses.
What is the effective annual rate?
The yearly rate that gives the same result after compounding. It lets you compare GICs that compound differently.
Is GIC interest taxable?
In a non-registered account the interest is taxed as income at your marginal rate. This calculator applies that rate to the total interest.
Is my GIC protected by deposit insurance?
CDIC lists GICs among eligible deposits and combines deposits held in one name at a member institution for a coverage limit of $100,000. Check cdic.ca for your own case.
Which compounding is best?
More frequent compounding pays slightly more at the same stated rate; the effective annual rate shows by how much.
Where these numbers come from
- Canada Deposit Insurance Corporation — Deposits held in one name The $100,000 coverage limit and GICs as eligible deposits; the page shows no date.
Last verified 2026-10-23 The method on this page is checked against the sources above at least once a year. Spotted something out of date? Tell us and we will fix it.
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