RRSP Loan Calculator

RRSP Contribution Loan CalculatorAn RRSP contribution loan can help lower your income tax and increase the value of your RRSP at the same time. Borrowing to contribute to your RRSP will generate income tax refunds which can then be put toward loan repayment.Use this calculator to project how much an RRSP loan applied to this year’s tax return could be worth at your retirement. Consult with a licensed investment advisor before you invest.

Please enter the following information:
Tax Information

Marginal Tax Rate: (combined federal and provincial income tax rates for B.C. residents ranges from 20.06% to 43.70% depending on income)


RRSP Rate of Return: (enter the rate of interest you might expect to earn on your RRSP. The rates can vary greatly depending on the type of investments held. )


No. of Years to Retirement: (the time remaining before you plan to stop working, relax, and begin to enjoy the fruit of your RRSP savings.)


RRSP Contributions: (do you make regular or lump sum RRSP contributions throughout the tax year ? — if you do then click ‘YES’ or if otherwise click ‘NO’ )

Loan Information

RRSP Loan Amount: (the total cannot exceed your RRSP contribution limit as per “Notice of Assessment” from the previous tax year.)


Annual Interest Charges: (short term RRSP loans available through most banks and credit unions are typically offered at prime + 1%.)


RRSP Loan Term: (offered by most financial institutions, short term loan options allow for loan payback within a 12 or 18 month period.)


Loan Payment Deferral: (of 90 days to 120 days provides time for your tax refund to arrive so you can repay the loan before the 1st payment is due)


Apply Tax Refund to Loan Payments? (applying tax refund to loan payments will save on interest charges by paying off the loan much quicker.)

RRSP Loan Repayment Schedule

Monthly Loan Payments: (are determined by the size of the loan, the duration of the loan, and whether or not a loan payment deferral was used.)


Cost of Borrowing: (is the total interest charges applied, according to the size, duration, application of tax refund, and deferrment period if used.)


Number of Payments: (before the loan is fully paid. Affected by the duration, application of tax refund, and loan deferment period if used.)

15 Your First Loan Payment: (by default in 30 days. Choosing a loan deferment of 60, 90, or 120 days will alter your loan parameters.) days

Final Income Tax Refund: (is based on marginal tax rate, size of RRSP loan, and any RRSP contributions that were made troughout the year.)


Amount Interest Saved w/ Lump Payment: $

Tax Refund Amount: $

Time to Pay off Debts w/ Lump Sum: months

RRSP Contributions Year to Date:

DISCLAIMER: The administrator and owner of this website take no responsibility for any financial decisions made based upon the use of this calculator. The information provided by this calculator is intended solely for general information and educational purposes. Rates of return may fluctuate over time and especially for long-term investments. Final calculated results are not guaranteed to be completely accurate and are in no way endorsed, offered or guaranteed by Savii Financial Concepts. Copyright 2009 Saviifinancial.com ©

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