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RRSP Loan Calculator

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How much would you like to borrow?:
Is this a top-up loan?:
Loan repayment period:
Payment Frequency:
Interest rate:
Did you want to defer the start of your loan repayment by up to 90 days?:
The entry made in the "How much would you like to borrow" field was not a valid currency amount, or was outside the allowed range (1,000-50,000). Please re-enter a value rounded to the nearest dollar.
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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.

Please indicate if this is a top-up loan.
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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.

Please select the number of years/months in the loan repayment period.
 
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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.

Please select the payment frequency.
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Payment Frequency

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.

View current rates The entry made in the "Interest Rate" field was either not a valid number, or a number with more than 2 decimal places. Please re-enter the value.
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Interest rate

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.

Please indicate if you wish to defer the start of your loan repayment.
Please indicate how much you wish to defer the start of your loan repayment.
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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.

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Your marginal tax rate:
Percentage of tax refund to apply to the loan balance:
The entry made in the "Your marginal tax rate" field was either not a valid number, a number with more than 2 decimal places, or was outside the allowed range (0-50). Please re-enter the value.
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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.

The entry made in the "Percentage of tax refund to apply to the loan balance" field was either not a valid number, a number with more than 2 decimal places, or was outside the allowed range (0-100). Please re-enter the value.
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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.

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Estimated annual RRSP rate of return:
Number of years until retirement:
The entry made in the "Estimated annual RRSP rate of return" field was either not a valid number, a number with more than 2 decimal places, or was outside the allowed range (0-100). Please re-enter the value.
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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.

The "number of years until retirement" field was either not filled in with a value within the allowed range (1-53) or loan repayment period cannot exceed years to retirement. Please enter the value.
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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.

Your RRSP:
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at Retirement

Your RRSP Growth

Your Loan:
Expected tax refund1 on NaN:
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Amount of tax refund to apply to loan balance2:
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Loan payment amount/frequency:
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Total interest cost of loan:
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Adjusted Loan Amortization3:
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Loan Amortization Table

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Charts are for illustrative purposes only.
This calculator assumes a constant interest rate and rate of return.
Personal lending products are offered by Royal Bank of Canada and are subject to credit approval.
This calculation assumes the following: (i) a constant interest rate throughout the loan amortization period, (ii) interest is compounded each payment period; and (ii) the payment schedule you selected is maintained with no additional payments. The interest rate for variable rate loans may fluctuate in conjunction with a change in Royal Bank of Canada Prime Rate, which may affect your loan amortization. Interest rates may have changed or may be different due to information contained in your application.
Prime rate means the variable annual interest rate announced by Royal Bank of Canada from time to time as a reference rate for determining interest rates on Canadian dollar commercial loans in Canada.
The calculation is based on the accuracy and completeness of the data you have entered, is for illustrative and general information purposes only, and is not intended to provide specific financial or other advice, and should not be relied upon in that regard. Actual results may vary, perhaps to a large degree.
Royal Bank of Canada uses reasonable efforts to include accurate and up-to-date information in this calculator, but cannot guarantee that all information is accurate or complete or current at all times. You should speak with one of our credit specialists or RBC advisors before making a final decision on a RRSP Loan to ensure it meets your overall financial needs.
Royal Bank of Canada does not make any express or implied warranties or representations with respect to any information or results in connection with the calculator. Royal Bank of Canada will not be liable for any losses or damages arising from any errors or omissions in any information or results, or any action or decision made by you in reliance on any information or results.
1)
Calculated using a marginal tax rate of . It is assumed that the entire RRSP loan amount is claimed as a deduction on the current year’s income tax return, and that the entire tax savings resulting from the RRSP contribution results in a tax refund payable to you.
2)
Assumes the tax rebate is applied to the loan balance within 120 days of the loan advance, and that the principal repayment amount is used to reduce the loan balance, therefore reducing the amortization period.
3)
No revised loan documentation will be sent out to show revised amortization and payments. Payments that were set at origination will remain for the entire amortization term. The amortization is based on the client making all of their payments on the due date and with no delinquencies.
4)
Mutual Fund returns are not guaranteed.