Last updated: 2026 assumptions reviewed. Assumptions & sources
Tools & Resources

What Your Habits Are Costing Your Retirement

Track multiple habits at once. See the growth curve, the cost of waiting, and what redirecting even half could do. I'm not telling you to stop. I'm just showing you the number.

Carried all the way out
One habit→A month of it→A year of it→Thirty years of it
This is not an argument for quitting anything. It is what the number looks like when you follow it to the end, which is the part nobody does.

Quick Adds

One tap loads a common example to start from. Adjust it or add more below. No judgment, just a number to look at.

Tap any preset to add it. The prices are typical Canadian figures; adjust them to match your real spending.

Your Habits

Your Timeline

These settings apply to all your habits.

years
years
%
Trims the growth rate by 2% a year for inflation, so the final number reads in purchasing power you'd recognize today.

The Real Price Tag

Total Monthly Cost
$0
add a habit above to get started
Total Spent
$0
over 0 years
If Invested Instead
$0
at retirement
What Compounding Adds
$0
growth on top of what you put in: the compounding premium
Breakdown by Habit
Habit Monthly Total Cost If Invested

How This Works

Three questions sit behind every number on this page.

What does it cost you directly?

Monthly equivalent multiplied by 12 months multiplied by years to retirement. No tricks.

What would it be worth if you invested it?

The future value formula for monthly contributions: FV = PMT x [((1+r)^n - 1) / r] where r is the monthly rate and n is the number of months. This is what a TFSA or RRSP contribution of the same amount would compound to by retirement, assuming a consistent annual return. The chart and the cost-of-waiting comparison use the same math, just measured year by year.

What would it pay you in retirement?

The monthly income figure uses the 4% rule: a common planning guideline that says you can withdraw about 4% of a portfolio each year with a good chance of it lasting through retirement. It is a guideline, not a law of physics, but it turns a big abstract pile into something concrete: a monthly amount, for life.

This is not investment advice. Past returns don't guarantee future results. The 7% default is a commonly cited long-term estimate for a diversified equity portfolio. It is not a promise. The real number for your situation depends on your actual investments, fees, and timing. The "today's dollars" toggle applies a 2% inflation assumption. Talk to a qualified financial planner before making decisions. But the math is real.

Tools Dan uses

Redirect the money

The number only matters once you do something with it. Send that monthly total to a TFSA instead. Wealthsimple opens one in minutes with no minimum.

Open a Wealthsimple TFSA →

Affiliate link, no cost to you. How this works. See the full list of tools Dan recommends.

Frequently Asked Questions

How much does a $6 coffee every workday cost me per year?

About $1,560 per year (assuming 260 workdays). Over ten years, that same money invested at 7% annual return would grow to approximately $21,500. The calculator shows both the annual and long-term cost of any spending habit so you can make an informed decision.

Is it wrong to spend money on small pleasures?

No. The goal is not to eliminate enjoyment from your budget but to spend intentionally. Knowing the true cost of a habit helps you decide whether it is worth it. If the daily coffee brings real value to your morning, keep it. If it is just a default, that is worth examining.

Do I have to give up a habit completely for this to matter?

No. Redirecting even half of a recurring habit into a TFSA or RRSP still compounds into a meaningful amount over a few decades. The calculator includes a comparison that shows exactly what redirecting half or a quarter would grow to, and what that could pay you each month in retirement under the 4% rule.

What does waiting five years to start actually cost?

More than most people expect, because compounding is back-loaded: the largest growth happens in the final years, and a late start cuts those years off. For a typical habit redirected at 7% over 30 years, starting five years late can reduce the final amount by a third or more. The calculator shows your exact gap.

Does this calculator assume the money is invested?

Yes, the long-term calculation assumes the daily or monthly habit cost is redirected to an investment earning the rate of return you select. This is a hypothetical illustration, not a guaranteed outcome. It is meant to show the opportunity cost of spending habits over time.

How do I use this to build a better budget?

Start with your largest habits, not your smallest. A gym membership you never use costs more than a daily coffee. Enter each recurring discretionary expense and see its annual and long-term cost. Then decide which ones are earning their keep.

What is a reasonable rate of return to use in this calculator?

For long-term projections (ten years or more), 5-7% is a reasonable real return assumption for a diversified index fund portfolio. Use 4-5% if you want a more conservative estimate or if the money would go into a savings account rather than investments. The "today's dollars" toggle applies a 2% inflation adjustment for you.