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Personal Economic Recovery Calculator (Canadian)

Recovering from a devastating investment loss takes both time and very often new contributions. Even a very large investment loss can be recouped if you are able to leave your money invested and begin adding new money. This calculator helps you determine what it might take to regroup, rebuild and re-grow after such an investment loss.

Personal Economic Recovery Calculator (Canadian) Definitions

Original investment
The amount of your investment before suffering your losses. This is the total you are looking to recover, or eventually have in your account.
Current value
Your current remaining balance after your losses.
Additional contributions
The amount you will contribute each period to your account. This calculator also assumes that you make your contribution at the beginning of each period.
Expected rate of return
This is the annually compounded rate of return you expect from your investments. For the purposes of this calculator, taxation is not factored into the results. If you pay taxes on the interest, dividends or capital gains from these investments you may wish to enter your after-tax rate of return.

The actual rate of return is largely dependent on the type of investments you select. For example, for the last thirty years the average annual rate of return for the TSX is about 10%. Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Expected inflation rate
What you expect for the average long-term inflation rate.
Adjust for inflation
Check this box to show all results adjusted for inflation. The rate of return is effectively lowered to compensate for any investment return you received that simply allows you to maintain the purchasing power of your investment.