Your assumptions · Clearly labelled

    What will it cost later, and what will savings be worth?

    At the Bank of Canada’s 2% inflation target, something that costs $100 today would cost $121.90 in 10 years. Canada’s actual average over the last 10 years was 2.6% a year. These are projections from the rate you choose, not forecasts.

    Mitey points at the rising yellow column of a tall brass thermometer.

    Projection at a rate you choose

    What will today’s price be later?

    At 2% a year, $100.00 today becomes

    $121.90in 10 years

    And the other way: a fixed $100.00 received in 10 years buys what $82.03 buys today.

    $100$105$110$115$120Yr 0Yr 2Yr 4Yr 6Yr 8Yr 10
    At 2% a year

    Source: Statistics Canada, table 18-10-0005-01 (annual average CPI, 1914 to 2025). Retrieved October 30, 2026. Presets: annualized change in the annual average CPI over the 10 and 25 years to 2025.

    Savings after inflation

    What will your savings really buy?

    Uses the inflation rate above (2%).

    In 20 years you would have

    $107,694
    In today’s dollars
    $72,475
    You put in
    $58,000
    Real return per year
    2.94%
    $25k$50k$75k$100kYr 0Yr 5Yr 10Yr 15Yr 20
    Balance In today’s dollars

    Savings goal after inflation

    How much to save each month for a goal?

    Uses the inflation rate (2%) and the return (5%) above.

    $50,000 of today’s buying power will cost

    $55,204in 5 years
    Your plan reaches
    $40,288
    Share of the goal
    73%
    Needed each month
    $720

    Short by $14,916. Saving about $720 a month would reach it.

    Your monthly budget, later

    What will your monthly bills cost in 5 years?

    Monthly expenses today and projected
    Expense and CPI categoryMonthly todayRate a yearIn 5 yrRemove
    		$3.46%$2,370
    		$3.20%$936
    		$3.14%$584
    		$1.64%$325
    Total$3,6003.21%$4,216

    The same monthly spending would cost $616 more a month, $7,386 more a year.

    Source: Statistics Canada, table 18-10-0005-01 (annual average CPI, 1914 to 2025). Retrieved October 30, 2026. Category rates are the annualized change in each component of Statistics Canada’s annual average CPI from 2015 to 2025. Past rates are not a forecast; your own prices can rise faster or slower.

    Straight answers

    Questions people ask

    What inflation rate should I assume?

    The Bank of Canada aims to keep CPI inflation at 2%, the midpoint of a 1% to 3% target range. Canada’s actual average was 2.6% a year over the last 10 full years and 2.2% over the last 25. Try more than one rate; nobody knows the future rate.

    How is the real return calculated?

    Real return = (1 + nominal return) ÷ (1 + inflation) − 1. A 5% return with 2% inflation is a 2.94% real return, slightly less than the 3% you get by subtracting.

    Does this include tax or fees?

    No. Enter a return after fees. Interest and gains in a non-registered account are taxed, which lowers the real return further; TFSA growth is not taxed.

    Educational information, not financial advice. Read how the CPI and these tools work.

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