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Borrow to Invest Calculator

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TaxTips.ca Calculators -> Borrow to Invest Calculator instructions

Input and Results | Details |

Input data into the yellow input fields, tab to the next field or press the calculate button.
The calculator uses 2017 tax rates, which are used for all years.
Make sure you review the Details page to see the possible income reduction.
1 Start year 2017
2 Choose province or territory from drop-down list
3 Your approximate taxable income per year
4 Estimated annual % increase in income in future years
Borrow to purchase investments
5 Amount borrowed
6 Borrow the money over a period of how many years? (1 to 10)
7 Interest rate
8 Amortization period in years, starting after borrowing period (0 to 20)  
  - choose 0 years if you would like to pay only interest for the entire time
% of investments in:
9 Canadian stocks/ETFs eligible for enhanced dividend tax credit
10 Other stocks
Rates of return on investments
11 Estimated total annual return including capital gains and dividends
12 Dividend yield on Canadian stocks/ETFs eligible for enhanced dividend tax credit
13 Dividend yield on other stocks/ETFs
14 Average annual capital gains (unrealized until investments are sold)  
    - on Canadian stocks/ETFs eligible for enhanced dividend tax credit
    - on other stocks/ETFs    
15
 
 
16 Difference per year
17 A
18 Balance of investments B
19 Outstanding loan balance     C
A + B - C
50% of which is taxable at your marginal tax rate. Tax is not payable until investments are sold.
Tax rates used are rates known as of May 15, 2017, including 2017 budget changes.
 

 

 

Tax Tips:

Be cautious, don't overextend yourself, invest in good quality stocks and ETFs, and plan to hold them forever.

Don't borrow to invest if you are novice investor!

See our article on Borrowing to Invest.

Questions or comments on the Borrow To Invest Calculator? 
We normally reply within 1 business day - no reply? Check your spam folder.
 

Revised: September 19, 2017

 

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