Print     E-mail    Bookmark and Share Share    

Calculators and Planners

RRSP Loan Calculator

A RRSP loan can be an excellent way to jump start your retirement savings. Use this calculator to see how an RRSP loan could help you in your retirement savings plan.




This Financial Calculator requires a Browser with Java(TM) applet Support. If you are seeing this message you will need to download SUN's Java(TM) Plug-in.

Definitions

Amount to borrow
The amount you wish to borrow for your RRSP Loan. The calculator has assumed the amount borrowed is the same as the amount you will deduct on your personal income tax return. Please consult your Tax Advisor to determine the amount you could deduct for your personal income tax purposes.

Interest rate
The interest rate for your RRSP loan. All interest is compounded monthly.

Repayment period
The number of years to repay the loan. This is the length of time to repay the loan if you do not use any of your tax refund to pay down the principal balance.

Marginal tax rate
For illustrative purposes, we have assumed the marginal tax rate of 40. If this is not your marginal tax rate, please change it. Please consult your Tax Advisors if you are unclear as to what tax rate to use. The calculator has assumed that the Tax refund is equal to the loan amount multiplied by your marginal tax rate. However, your tax refund may differ depending on other personal income tax factors.

Estimated annual RRSP return
The annual percentage rate you expect to earn on your RRSP. The average annual rate of return for the TSX has been 11% for the last 20 years. You may wish to use a more conservative rate of return if you are within 10 years of retirement. This calculator compounds all earnings annually.

Years until retirement
Number of years before you expect to retire.

Tax refund to apply to loan balance
This is the percentage of your tax refund that you wish to apply to the principal balance of your loan. This amount will be used to reduce your balance in month four of your loan.

The calculators contained on this site is provided for illustrative purposes only and is only intended to assist you in understanding how certain investment strategies may impact your investments over a specific period of time. Dynamic Funds does not warrant or make any representations regarding the use or the results of the Calculator in terms of its correctness, accuracy, timeliness, reliability, or otherwise. Information herein is subject to change without notice and Dynamic Funds is not responsible to update this information, nor does it accept any responsibility for any loss or damage that results from the use of the results of the Calculator. Projections made using the Calculator are not intended to be a substitute for professional advice and, because each person's situation differs, we recommend that you consult a professional investment advisor to ensure you are using the information on this site to your best advantage