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Sheltered Investment Calculator

Contributions to your Registered Retirement Savings Plan (RRSP) are considered sheltered investments because they are 'sheltered' from taxation. This calculator compares the growth of a single contribution inside and outside of an RRSP, so you can make better decisions about where to invest.

Try out the calculator by either entering your own numbers into the fields below or by using our Story example.

Your personal information will not be recorded.

Setting up the calculator

Let me use:
  • My own numbers
  • Michel's story: Michel has $10,000 to invest, and plans to retire in 10 years.

Enter your own numbers in to the calculator below

Michel's story: Michel has $10,000 to invest, and plans to retire in 10 years.

Michel's Story: Michel has $10,000 to invest, and plans to retire in 10 years. He can earn 5%. How much more will that $10,000 grow if he invests it inside instead of outside his RRSP account?

Getting ready to calculate

1. How much I will invest

Enter the dollar amount of the investment.

 $

example: $10,000
2. The return I will make

Enter the return, expressed as a percentage, that you expect to make each year on this investment. You can enter a decimal point if the rate is not a whole number.

 %

example: 5
3. The number of years the money will be invested

Enter the number of years this money will be invested. For a Guaranteed Investment Certificate (GIC) or a bond, this is the term (number of years left to maturity). For a savings account or stock or fund, this might be how long you plan to hold onto the investment, or the number of years until retirement.

example: 10 years
4. My marginal tax rate

Marginal tax rates vary by province. Marginal tax rate is the percentage of tax paid on any additional dollar of income. Higher income earners are taxed at higher marginal tax rates. (This refers to taxable income, which is less than your earned income). If you work in Ontario, select your income from the drop-down menu. For residents of other provinces, visit Taxtips.ca to find your province's marginal tax rate. Use the value shown in the Other Income column. Enter it here:

 %

example: 30

Results

What this investment will be worth: (find out more)
The results show what your investment could be worth at maturity or when sold, depending on whether it was held inside or outside an RRSP. Note that if you had indeed contributed this amount to your RRSP, your income tax due would have been reduced. The results show what would happen if you invested that reduction as well in the first year. Remember that income tax is payable when you withdraw money from an RRSP.
Years Inside RRSP Outside RRSP
1 Year: $ $
 Years: $ $

If the tax refund is also invested inside the RRSP:
Years Inside RRSP
1 Year: $
 Years: $
It would be worth this much more: (find out more) $
This is how much more an investment inside an RRSP, including the re-invested tax refund, would be worth after the investment period, compared to the same amount invested outside an RRSP.

NOTE: Income tax must be paid when investments are withdrawn from a sheltered account but your tax rate may be lower at the time of withdrawal.

The results provided by the above financial calculators are hypothetical and are for illustrative purposes only. Investor Education Fund does not guarantee either the applicability of the above financial calculators to your individual circumstances or the accuracy of any results obtained by their use. Although we believe the above financial calculators to be accurate and complete, we accept no liability for any inaccuracies or omissions which may occur. By offering the above financial calculators for your use, Investor Education Fund does not intend to provide you with any financial, legal, tax, or accounting advice, or with any advice regarding the suitability or profitability of any product, investment or financial strategy or decision. Please consult our Terms of Use for additional information.