RRSP Savings Calculator

© 2018 Walter Harder & Associates Inc.

Calculator
  Taxable Income
  RRSP Contribution
  Taxes Payable: Federal Provincial Total  
  With no RRSP contribution      
  With your RRSP contribution      
  Savings      
  Return on investment      
RRSP Loan Calculator
 
Amount borrowed: Interest rate: %
Repayment Period: years Monthly payment:
Results:
Use from refund to pay down loan balance in month:
RRSP Expected Rate of Return:    %
Cost of Borrowing: RRSP value:
Help

RRSP Savings Calculator - Help



Assumptions

 
 This calculator is based on a single taxpayer. It does not take into account any personal amounts, such as the spousal amount, disability amount, or age amount. In most cases, such personal amounts will have no effect on the taxpayer's savings by making an RRSP contribution.

 

Tax Year

  This calculator defaults to the current calendar year or, if tax rates are available, to the following calendar year. Remember that rates are subject to change until the end of the year.
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Province of Residence

 Select the taxpayer's province of residence as of the end of the taxation year. This is used to determine provincial tax rates. Note that because Quebec determines taxable income differently from the other provinces, this calculator any variances in the taxable income for Quebec purposes are ignored.
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Taxable Income

 Enter the taxpayer's taxable income. This will determine the federal and provincial taxes payable.
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RRSP Contribution

 Enter the proposed RRSP contribution. This calculator assumes that the taxpayer has sufficient RRSP contribution room to deduct the full amount contributed.
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Taxes Payable

 This section shows the federal and provincial taxes payable with no RRSP contribution and with the proposed RRSP contribution. These amounts may be overstated if the taxpayer is eligible for additional personal amounts.
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Savings

 This line shows the difference between the taxes payable with no RRSP contribution and the contribution entered.

 Although the individual amounts may be overstated if the taxpayer is eligible for additional personal amounts, the difference - i.e. the savings by making the contribution will still be accurate.
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Return on Investment

 This line shows the tax savings as a percentage of the RRSP contribution. This represents an immediate return on investment of the RRSP funds before any investment returns earned within the RRSP.
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RRSP Loan Calculator

 This section allows you to set up the details of a proposed RRSP loan to make the contribution. While the interest paid on an RRSP loan are not tax deductible, the immediate tax savings from making the contribution may be sufficient to warrant making the loan if funds are not otherwise available to contribute.

  • Amount borrowed - this field default to the RRSP contribution amount but if less is borrowed, the amount may be overridden

  • Interest rate - this field defaults to 3% - enter the appropriate rate for the proposed loan

  • Repayment period - this field defaults to 1 year. Override if the loan repayment will be over a different period of time.

  • Monthly payment - this amount will be calculated based on the amount borrowed, interest rate and repayment period

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Loan Results

  • Using the refund to pay down the loan - by default the calculator assumes that the tax savings due to the RRSP contribution will be used to pay down the loan after three months. Override the pay-down amount or period if the defaults are not appropriate.

  • RRSP expected rate of return - this field defaults to 4%. Enter your expected rate of return within the RRSP if different.

  • Cost of borrowing - this field calculates the interest payable on the loan based on the details of the loan taking into account the early paydown using the anticipated income tax refund as a result of the RRSP contribution.

  • RRSP value - this is the expected value of the RRSP contribution at the time the RRSP loan is repaid, based on the expected rate of return within the RRSP assuming monthly compounding.

 This section shows the cost of the loan and the resulting growth within the RRSP.
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Tips

  Printing Use the Print button () to print this page. You may have to adjust your browser's print setting for satisfactory results.

  Removing Overrides - If you type into a overridable field (), the field will turn red and the field value will no longer be calculated even if additional changes are made to other input fields. If you wish to remove your override and have the field calculated again, delete the entire contents of the field.

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