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Savings · taxes + inflation

What this is

Three views of the same nest egg: nominal, after-tax, and real.

Bank interest is fully taxed at your marginal rate (not 50% inclusion like capital gains). Inflation erodes purchasing power. The 'real' number is what your money will actually buy at retirement.

Nominal FV

$116,639

After-tax FV

$106,247

Real FV (today's CAD)

$73,360

If your nominal HISA rate is 3.5% but inflation is 2.5% and tax takes 30% of the 3.5%, your real after-tax return is roughly 0% (you're treading water).

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting. In a TFSA: tax = 0 (set marginal to 0). In an RRSP: tax applies at withdrawal at expected retirement marginal rate, not current.