RRSP Loan Calculator (Canadian)

The Registered Retired Savings Plan (RRSP) is a tax deductible pension savings strategy. Under this plan your contributions to investments are put into trusts by Canada Revenue Agency. The RRSP loan calculator will show you interest and principal payables and income receivable by putting information together.
Amount to borrow
The sum that need to be borrowed from the RRSP. Literally, the amount to borrow is equal to the deductible amount of personal tax return. Yet it’s a good idea to find out the amount you can deduct from your personal tax return with the help of a tax counselor.
Interest rate
The monthly compounded rate of interest for the RRSP loan.
Repayment period
Required time (in year) to pay off the loan. This should equal the number of years it takes to repay the principal amounts without utilizing any tax refund.
Marginal tax rate
This is the percentage increase in the tax rate due to an additional dollar income. This rate is used to find out the refundable tax amount by multiplying with the actual loan amount.
Estimated annual RRSP return
The yearly expected compounded rate of return from your Registered Retirement Savings Plan (RRSP). In reality, the actual rate of return may not be the same, rather lower, as the investors are willing to have constant and stable inflows of funds and therefore invest with a conservative approach. As high return is subject to high risk, you can choose short-term investment opportunities to offset the time volatility and higher risk premium.
Years until retirement
The number of years left before your retirement.
Tax refund to apply to loan balance
The portion of tax refund that can be used to repay the principal loan balance. This balance is a important factor to reduce the loan balance payable.