RRSP Loan Calculator

RRSP Contribution Loan Calculator

An RRSP contribution loan can help lower your income tax and increase the value of your RRSP at the same time. The borrowed RRSP contributions generate income tax refunds which can then be applied to repay the loan. Use this calculator to project how much an RRSP loan applied to this year’s tax return could be worth at your retirement. Enter numerical values with or without decimal points, but do not separate numbers by using commas or blank spaces.
NOTE: This investment tool is meant for educational purposes only. Consult 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 Information
RRSP Rate of Return: (enter the rate of interest you expect to earn on your RRSP investments ) %
Number of Years Before Retirement:
RRSP Contributions (do you make regular or lump sum RRSP contributions throughout the tax year ?)
YES
NO
Loan Information
RRSP Loan Amount: (Enter the amount you like to borrow? The total cannot exceed your RRSP contribution limit as per your “Notice of Assessment” from previous tax year.) $
Annual Interest Charges: (short term RRSP loan rates are typically offered at prime + 1%) %
Loan Term: (most short term RRSP loans are either 12 or 18 months)
Loan Payment Deferral: (a deferral of 90 days to 120 days usually allows enough 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? (by applying your income tax refund to your RRSP loan payments you will save interest charges and pay off your loan much sooner.)
YES
NO
Loan Repayment Schedule
Monthly Loan Payments: $
Cost of Borrowing: (the total interest charges on your loan ) $
Number of Payments: payments
Your First Loan Payment is Due in: days
Your Income Tax Refund: $

Amount Interest Saved w/ Lump Payment: $

Tax Refund Amount: $

Time to Pay off Debts w/ Lump Sum: months



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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