Free Canadian Wealth Tool · 2026

Borrow-to-Invest Compound Calculator

Model the real math of an investment loan: borrow a lump sum, pay interest monthly, let the funds compound — then see the net profit after repaying the loan, the break-even return you need, the tax deduction, and the one comparison generic calculators never show you.

Your Details

The B2B / investment loan you borrow as a lump sum.
Interest-only: you pay this monthly and repay the full principal at the end.
Blended average across the funds you plan to hold. Be conservative — this number decides everything.
Interest on money borrowed to earn investment income is generally tax-deductible in Canada — this credits that back. Enter 0 to ignore.

Your Results

Net Profit After Repaying the Loan
$0
Investment value at the end—
Monthly interest payment—
Total interest paid over the term—
Tax savings from deductible interest—
After-tax cost of borrowing—
Repay loan principal at the end—
Break-even fund return needed—
The honest comparison most calculators hide: what if you skipped the loan and simply invested the same monthly payment from cash flow instead?
Invest the monthly payment instead (no loan)—
Leverage advantage vs that alternative—
At these numbers the strategy loses money — the funds don’t out-earn the after-tax cost of the loan. Leverage amplifies losses exactly as efficiently as gains.
Assumptions: lump-sum invested day one, monthly compounding, interest-only loan with principal repaid at the end, interest fully tax-deductible at your marginal rate (requires the investment to be income-producing and the loan properly documented — non-registered accounts only, not TFSA/RRSP). Returns are never guaranteed; the bear-case line shows the same plan if markets deliver 3% less per year. This is an educational model, not a recommendation to borrow.

Leverage is a strategy, not a shortcut.

Get the free Build Wealth in Canada guide — how leveraged investing, registered accounts, and compounding actually fit together, and the guardrails that keep a good strategy from becoming a margin call.

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Estimates for education only, using 2026 CRA limits ($33,810 RRSP dollar limit) and 2026 federal + provincial tax rates. Not tax, investment, or financial advice. Your exact RRSP deduction limit is on your CRA Notice of Assessment or in CRA My Account. Quebec figures reflect the federal abatement. Consult a qualified professional before acting.