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 Canadian Tax and
Financial Information 		Borrow to Invest Calculator

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TaxTips.ca Calculators -> Borrow to Invest Calculator information
Input data into the yellow input fields, tab to the next field or press the calculate button.
The calculator uses 2018 tax rates, which are used for all years.
Make sure you review the Details page to see the possible income reduction, which may be significant.
1 Start year 2018
2 Choose province or territory from drop-down list
3 Your approximate taxable income per year
4 Estimated annual % increase in income in future years
  Borrow to purchase investments
5 Amount borrowed
6 Borrow the money over a period of how many years? (1 to 10)
7 Interest rate
8 Amortization period in years, starting after borrowing period (0 to 20)
      - choose 0 years if you would like to pay only interest for the entire time
  % of investments in:
9 Canadian stocks/ETFs eligible for enhanced dividend tax credit
10 Other stocks
  Rates of return on investments
11 Estimated total annual return including capital gains and dividends
12 Dividend yield on Canadian stocks/ETFs eligible for enhanced dividend tax credit
13 Dividend yield on other stocks/ETFs
14 Average annual capital gains (unrealized until investments are sold)
- on Canadian stocks/ETFs eligible for enhanced dividend tax credit
- on other stocks/ETFs  
15
16 Difference per year
17 A 
18 Balance of investments B 
19 Outstanding loan balance
C 
A + B - C 
50% of which is taxable at your marginal tax rate.  Tax is not payable until investments are sold.
Tax rates used are rates known as of May 31, 2018, including 2018 budget changes except NOT Ontario tax changes. Includes Nova Scotia additional personal tax credit where applicable.
Non-registered Investments and Debt
    Non-registered investments in stocks & ETFs
using borrowed funds 		Tax Calculation Net Disposable Income Calculation
& Balance of Investments Less Loan 		Results with no borrowing Difference Net Disposable Income
Annual Avg to Date
Yr # Regular
Income 		Inv.
Buys 		Actual
Cdn
Dividends 		Other
Dividends 		Cdn
Stocks 		Other
Stocks 		Investments
Balance 		Inv
Cost Basis 		Interest
Expense 		Taxable
Income 		Tax
Payable 		Loan
Payments 		Net
Disposable
Income 		Loan
balance 		Inv-Loan
Balance 		Tax
Payable 		Net
Disposable
Income 		Net Disp.
Income
Difference 		Incr in MV
Investments
Net of Loan 		Net Annual
Gain 		Cumulative
Gain 		Borrowing Not
Borrowing
1

Make sure you read our articles:
          Are you better off to  pay down your mortgage, or contribute to an RRSP?
          Save and Invest

To calculate the return on your investments, use our Investment Return Calculator.

Questions or comments on the Borrow to Invest Calculator? 
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Revised: June 05, 2018

 

 
 

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