Leverage Calculators

Leverage investing.

Compare leveraged vs unleveraged portfolio outcomes. See how borrowing to invest amplifies both gains and losses, factoring in Canadian tax-deductible interest.

Inputs

Your capital
$
$
Equity + borrowed = total invested. 50/50 here is 2:1 leverage.
%
Investment assumptions
%
%
yr
%
Tax
$

Result

Fill the form and press Calculate.

How leverage amplifies returns — and losses

Leverage acts as a multiplier on both gains and losses. With a 2:1 ratio (borrowing an amount equal to equity), a 10% market gain becomes roughly a 20% gain on your equity minus interest costs; a 10% loss becomes roughly a 20% loss plus interest. CRA allows interest deduction (line 22100) when borrowing to earn investment income, reducing the effective borrowing cost.

Key risks: margin calls and forced selling, amplified drawdowns, interest-rate risk on variable-rate loans, and psychological pressure during downturns.

Disclaimer

Educational estimates only. Leverage investing can lead to losses larger than your initial capital. Consult a licensed financial advisor.