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Borrow for RRSPs Calculator
Canadian Tax and
Financial Information

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Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with! Calculators -> Borrow For RRSPs Calculator information page   This calculator will retain data for you, using cookies on your own computer.  If you don't want this, click Reset before closing the web page.  Not retaining data?  See our main Calculators page.
Should You Borrow to Contribute to RRSPs?  
This calculator will compare the long term results of these 4 alternatives:
Plan 1. Borrow for RRSPs each year, and put the tax refund into your RRSP.  The interest on the loan is not tax deductible.
Plan 2. Don't borrow for RRSPs, but use the loan payment calculated in #1 plus tax savings as a monthly deposit to RRSPs.
Plan 3. Don't borrow for RRSPs, but use the loan payment calculated in #1 as a monthly deposit to RRSPs, and use the tax refund for living expenses.
Plan 4. Borrow for RRSPs each year, but pay down the loan with the tax refund.
Input your information into the yellow fields - amounts are updated automatically after you hit the enter or tab key.
Your marginal tax rate %:
Look up your total annual taxable income in the Marginal Tax Rate Table for your province
Loan amount Loan is repaid over 1 year.
RRSP loan rate: Monthly loan payment->
Estimated return on RRSPs
See our Recommended Stocks page for how to earn an average of 9% per year in your RRSP.
Balance in RRSPs
# of Years 10
 Plan 1 
 Plan 2 
 Plan 3 
 Plan 4 
Total Deposits Made to Each RRSP
# of Years 10
 Plan 1 
 Plan 2 
 Plan 3 
 Plan 4 
These amounts do not include the loan interest paid in Plans 1 and 4.
Please read our article: Should I Borrow to Contribute to an RRSP?
Tax Tips:
If you are in the lowest tax bracket, invest in TFSAs before RRSPs.
If you have never invested, don't start by borrowing for RRSPs!

Questions or comments on the Borrow For RRSPs Calculator? 
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Revised: June 26, 2018

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