Leverage Calculators

RRSP loan gross-up.

See how borrowing to maximise your RRSP contribution creates a multiplier effect — the tax refund pays down the loan, leaving you with a larger RRSP balance for almost no extra out-of-pocket cost.

Inputs

RRSP contribution
$
The amount you currently have to contribute.
$
Check your CRA My Account for your exact room. 2024 limit: $31,560.
Loan details
%
mo
Tax & income
$
Used to determine your marginal tax rate.
Long-term projection
%

Result

Fill the form and press Calculate.

How the RRSP gross-up works

The gross-up formula is straightforward: Gross-up = Cash available / (1 − Marginal tax rate). At a 30% marginal rate, $10,000 grosses up to $14,286 — you borrow $4,286 and contribute the full $14,286. The tax refund on the larger contribution (also ~$4,286) pays down the loan, less a small interest cost.

The strategy is most powerful for high-income earners: at a 50% marginal rate the multiplier is 2.0x, doubling your contribution. RRSP loan interest is not tax-deductible (unlike investment loans), so keep the term short.

Disclaimer

Estimates for educational purposes only. Verify your RRSP contribution room with CRA and consult a licensed advisor before borrowing to invest.