Sheltered Investment Calculator
Quick Tips
To make the most of this calculator, you can:
Learn By Example
For quick learning, we've loaded an example into the calculator. To see the example, go to the "Setting Up the Calculator" section and select "Michel's story."
The calculator displays this example: Michel has $10,000 to invest in mutual funds, and plans to retire in 10 years. He thinks he can earn 5% a year, after fees and expenses. How much more will that $10,000 grow if he invests it inside instead of outside his RRSP account?
Learn More: Play With Our Numbers
Now find out what happens if you change just one number: either the amount invested, rate of return, or number of years investing.
- In the "Setting Up the Calculator" section, choose "Michel's story".
- Change any of the first three fields. For example, what happens if Michel has 20 years until retirement?
- You can leave the marginal tax rate at 31.15% or enter another rate. The marginal tax rate is the percent of tax paid on any additional dollar of income you earn.
- Click "Calculate" when you're ready to see the results.
Learn More: Play With Your Own Numbers
To learn more about the effects of compounding, try changing more numbers.
- In the "Setting Up the Calculator" section, choose "My own numbers."
- Enter any investment amount and return.
- For the number of years invested, you can enter the term of the investment or if there isn't one (like a mutual fund or savings account), the number of years until you retire.
- If you live in Ontario, select your income from the drop-down list and your marginal tax rate will be filled in for you. If you live outside Ontario, visit Taxtips.ca to find your province's marginal tax rate. Use the value shown in the Other Income column. You can also leave the field blank and it will default to 31.15%.
- Click "Calculate" when you're ready to see the results.