RRSP Loan Calculator
How much would you like to borrow?
Enter an amount that you would like to borrow to contribute to your RRSP that is between $1,000 and the maximum amount you can contribute to your RRSPs for the current tax year (to a maximum of $50,000). This calculator assumes you will deduct the full amount of the RRSP loan in the current year on your tax return.
Is this a top-up loan?
An RRSP top-up loan allows you to take advantage of unused RRSP contribution room carried over from previous years, and it offers a longer repayment period – up to 10 years – than is offered with a regular RRSP loan, which is based only on the current year’s contribution room.
Loan repayment period
This is the amount of time you would like to take to repay the loan. If you have selected a top-up loan, the maximum repayment period is 10 years 0 months. Otherwise, the maximum repayment period is 5 years.
Select the payment frequency which coincides with your pay period to meet your cash flow needs. Choosing to repay your loan more frequently will reduce the amount you pay in interest costs over the life of your loan.
When you use your loan to invest in your RBC Royal Bank® RRSP, the variable interest rate on the loan is set as low as our Prime Rate.
Did you want to defer the start of your loan repayment by up to 90 days?
Deferring your payments means your first payment will be due up to 90 days after the start of the loan so you can use your tax rebate to repay all or some of your loan. Once repayment begins, all accrued interest will be collected from the payments before principle reduction begins.
Your marginal tax rate
This is the amount of tax that you have to pay on each extra dollar of income you make. Your tax rate rises as your income rises. Your marginal tax rate is used to calculate the expected tax refund amount on the RRSP contribution.
For illustration purposes, this calculator shows a 40% marginal tax rate by default, However, you should check with your accountant to determine what your marginal tax rate would be based on your circumstances, and edit the default amount to reflect your individual marginal tax rate.
Percentage of tax refund to apply to the loan balance
Applying all or a portion of your tax refund to your loan balance will reduce the amount of interest you would pay over the course of the loan repayment period.
Estimated annual RRSP rate of return
This is the annual percentage rate of return that you estimate you would receive on your RRSP.
For illustration purposes, this calculator shows a 6% estimated annual RRSP return by default. However, individual results will vary, perhaps to a large degree, and this does not reflect an anticipated or expected rate of individual return.
If you know the average rate of return you received on other similar investments in your portfolio and expect to earn a similar rate in future, you may wish to enter that rate of return into this calculator.
If you are closer to retirement, you may wish to enter a more conservative rate of return.
Number of years until retirement
Subtract your age from the age at which you plan to retire, to determine the number of years until your retirement. This should be a number between 1 and 53 years, as the minimum age to invest in an RRSP is 18, and at age 71 no further contributions can be made.
Protect your RBC Royal Bank RRSP Loan with LoanProtector life and disability insurance.