TaxTips.ca - Borrow for RRSPs Calculator

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		Each 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!

TaxTips.ca Borrow For RRSPs Calculator
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.

Your marginal tax rate

Loan amount
RRSP loan rate
Estimated return on RRSPs
Monthly loan payment

Balance in RRSPs
# of Years
Plan 1
Plan 2
Plan 3
Plan 4

Total Deposits Made to Each RRSP
# of Years
Plan 1
Plan 2
Plan 3
Plan 4
These amounts do not include the loan interest paid in Plans 1 and 4.

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!