Definitions

Starting amount
The starting balance or current amount you have invested or saved.

Additional contributions
The amount that you plan to contribute to your savings or investment each period. The investment period options include monthly, quarterly and annually.

Years
The total number of years you are planning to save or invest.

Rate of return
The annual rate of return for this investment or savings account. For example, from  1950-2002, the average annual rate of return for the Canadian stock market was 10.5%. If you plan on withdrawing your money within five years, you may wish to choose a more conservative rate of return. Savings accounts at a bank or credit union pay as little as 2% or less.

Compounding
This is the frequency that your investment's interest or income is added to your account. The more frequently this occurs, the sooner your accumulated interest income will generate additional interest. For stock and mutual fund investments you should choose 'Annual'. For savings accounts and term deposits all of the options are valid, although you will need to check with your financial institution to find out how often interest is being compounded on your particular investment.