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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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