Canadian Tax and
Financial Information
Borrow for RRSP Calculator

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Should You Borrow to Contribute to RRSPs?
This calculator will compare the long term results of these 4 alternatives:  
Plan 1. Borrow for RRSPs, 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, but pay down the loan with the tax refund.
Input your information into the yellow fields, then click on the Calculate button.
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 9% 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.
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 RRSP Calculator?   
We normally reply within 1 business day - no reply? Check your spam folder.

Revised: September 19, 2017

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