GIC Calculator
Project the return on a Canadian Guaranteed Investment Certificate (GIC).
About the GIC Calculator
Enter the deposit, the interest rate, the term and whether interest compounds to maturity or is paid out each year. The calculator gives the value at maturity and the interest earned.
A GIC locks in a rate for a set term. Eligible GICs at member institutions are insured by CDIC up to $100,000 per category.
The formula
Compound: P(1 + r)ⁿ; paid out: P(1 + r·n)
Worked example
$10,000 for 3 years at 3.5%, compounded yearly
- 10,000 × 1.035³ = $11,087.18
- Interest: $1,087.18
- Paid out yearly instead: $350 a year, $1,050 in total
Things to keep in mind
- Interest is taxable each year outside a TFSA or RRSP, even on a compounding GIC.
Questions people ask
Can I cash out early?
Non-redeemable GICs can't be cashed early; redeemable ones pay a lower rate.
Is it insured?
Up to $100,000 per category by CDIC at member institutions.
What is a GIC ladder?
Splitting money across 1- to 5-year GICs so one matures every year.