Financial Calculators

One of the factors that pushed me to make looniedoctor.ca was that I had a hard time finding financial calculators that could do what I wanted. There were plenty of simple calculators on the internet that could do basic things to illustrate a concept. However, many of them would overcall the benefits of various strategies by ignoring the effects of inflation and particularly the complex effects of taxes. Taxes are a big deal in Canada and have a major impact when you actually try to grow or access wealth – particularly if you are in a higher income range.

I have now made a number of calculators that people can use to examine how different financial strategies may pan out. Where applicable, they have multiple Canadian income tax calculators running in the background. They are made as Microsoft Excel spreadsheets with the calculations hidden in the background. It may not be sexy, but it was the best way to make calculators that you can modify with your own information and save it. I have locked the fields that you don’t modify and the calculators to prevent accidentally breaking equations. The modifiable fields are highlighted in a cream yellow colour.

This page is meant to house those calculators. You can click the links below to download them. On iPads and mobile devices they only display without modifying. You need to open in Excel  on a PC or the Apple computer equivalent to really use their power.

I have validated the tax calculators against others on the internet and they are very close, but have some variability due to boutique credits and “premiums” that I am not accounting for. They generally amount to a few hundred bucks for most provinces, but I still have not been able to get the Quebec calculators quite right since their tax system is very different.

Even though I have done what I think is a great job at making calculators that are helpful and account for many complexities automatically in the background, I need to give the standard disclaimer that they are general in nature and are for entertainment purposes only. You are responsible for your own due diligence in any financial or investment decisions that you may make. You use everything at your own risk and can’t sue me.

Portfolio Tax & Asset Allocation Calculator (plus swap ETF calculator)

Description: Tab #1 Tax & Asset Allocation

  • Enter in up to 15 holdings in your portfolio with their dividend/interest income, value, and management expense ratio.
  • Enter in your basic income information.
  • Classify each holding type as bonds, International Equity, US Equity, Emerging Market Equity, Canadian Equity, Canadian REITS, or Canadian Preferred shares with dropdown lists.
  • Classify the account type each holding is in as Corp, Taxable, RRSP, or TFSA.
  • The calculator will calculate the tax & fee drag for each holding. This includes foreign with-holding tax, Canadian personal, and small corporate taxation.
  • There is a table that will show the relative tax drag for each holding if it were in different account types and it will highlight holdings that aren’t in the lowest tax account type.
  • It has tables and graphs to show allocation by asset class and account type.
  • It has a table that shows your current allocation relative to what you have set as your goal to help with rebalancing.

Tab #2 Swap ETF Comparing Calculator

  • Has the Horizon TRI swap-based ETFs entered and paired with a matched conventional ETF. The fees and expected income are pre-populated.
  • Enter in your basic personal information for the taxable account calculations and some corporate dividend information for the corp account calculations.
  • You can switch between ETFs and Account Types to compare the tax and fee drag.
  • It calculates a risk premium for the swap-ETF compared to conventional.
  • You can enter your own ETF or GIC etc to compare also.

Download Portfolio Tax & Asset Allocation Calculator (with swap ETF calculator)

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Manager vs ETF Calculator

Description: This is a calculator that allows you to compare how your portfolio would compare over different time periods if you use a portfolio manage versus using a DIY passive ETF approach. You can modify the advisor fees by different portfolio sizes and it will adjust the fee as the portfolio grows. You can adjust your taxable income and it will account for the fact that advisor fees are deductible against your top marginal tax rate when you use a taxable account. Projected investment returns are also modifiable. The second tab in the calculator compares a fee based advisor to mutual funds (where fees are not tax deductible and don’t necessarily shrink with larger portfolios). The third tab illustrates the effects of inflation and the 4th tab allows you to compare the effects of contributing early compared to later in life.

Download Manager vs ETF Calculator

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RESP Calculator

Description: Tab #1

  • Allows you to enter in any current RESP amount that you have and what contributions you would like to make each year for a single beneficiary.
  • It automatically calculated CESG amounts and accumulated investment income based on your projections and estimates the account balance at different ages.

Tab #2  Used to determine optimal withdrawal strategies. The account amounts are determined from tab 1.

  • You can enter in withdrawals with educational grants, accumulated investment income and return of capital.
  • It also allows entrance of student income and calculates the taxes based on your province.
  • It will also show the penalties if you close out the account prematurely.

Download RESP Calculator

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RRSP Calculator

Description: Tab #1

  • This calculator allows you to enter your start age, contribution rate, income, and expected returns.
  • It shows your account accumulation over 35 years and you can enter an inflation rate to adjust to today’s dollars.
  • It also will automatically show you the size of TFSA and taxable accounts that you could generate by re-investing your tax refund into those vehicles.
  • There is also the ability to enter in your estimated retirement income from other sources and it will show your estimated after-tax retirement income if you retire at different ages with your accounts. You can adjust your withdrawal rate.

Tab #2

  • This calculator has basic provincial personal and corporate tax calculators running in the background that allows you to compare different strategies of paying yourself via dividends vs salary from a CCPC (private or professional corporation).

Tab #3

  • This calculator shows the difference between using a calculator (like this one) that accounts for the fact that your marginal rate can move down as you claim your RRSP deductions and a calculator that just uses your top marginal rate (as many on the internet do – especially on sites that sell RRSP loans).
  • With large RRSP contributions, it may make a difference whether you should claim your deduction in one year or over several. Optimally, you want to claim your deduction at a high tax rate and withdraw the funds down the road a lower marginal rate.

Download RRSP Calculator

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Spousal Loan Calculator

Description: Tab #1

  • Enter in the incomes of a higher income and lower income spouse, the spousal loan amount, and spousal loan interest rate.
  • Estimate your investment returns with loan and inflation rate.
  • The calculator will estimate the initial effect on your household taxes, tax drag, and interest drag on your portfolio.
  • It will give comparable estimates of portfolio size, adjusted for inflation, taxes, and interest after 25 years for a high income spouse taxable account vs a joint account vs a low income spouse account via a spousal loan.
  • You can enter in your estimated retirement income and sources in the bottom right and it will estimate your after tax retirement income, drawing on the account for the three compared strategies.
  • There is also a calculator that compares the approach of keeping the money in a CCPC instead of giving a dividend to fund a spousal loan. It accounts for portfolio growth at corporate tax rates and generation and dispersal for capital dividends and RDTOH.
  • All values are adjusted for inflation to show in “current dollars” rather than nominal dollars.

Tab #2

  • A simplified print out of the strategy comparison during the 25 year accumulation phase at the top.
  • Detailed annual information on account accumulation at the bottom.

Tab #3

  • A simplified print out of the strategy comparison during the withdrawal phase.

Download Spousal Loan Calculator

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Investment Loan Calculator

Description: Tab #1

  • Enter in the incomes of a higher income and lower income spouse and the investment loan amount.
  • You can change the loan interest rate in 5 year blocks.
  • Estimate your investment returns with loan and inflation rate.
  • The calculator will estimate the initial effect on your household taxes, tax drag, and interest drag on your portfolio.
  • It will give comparable estimates of portfolio size, adjusted for inflation, taxes, and interest after 25 years for a high income spouse taxable account vs a low income spouse account.
  • You can enter in your estimated retirement income and sources in the bottom right and it will estimate your after tax retirement income after paying the loan back, drawing on the account for the two compared strategies and also if you never took the loan.
  • The details of the portfolio growth annually is shown in the bottom area.
  • All values are adjusted for inflation to show in “current dollars” rather than nominal dollars.

Tab #2

  • A simplified print out of the strategy comparison during the 25 year accumulation phase.

Tab #3

  • A simplified print out of the strategy comparison during the withdrawal phase.

Download Investment Loan Calculator

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