# Financial Analyses Calculators

Financial Calculators

Financial analyses are an integral part of the wealth building process. It is always necessary to draw up a road map to where you want to go and the time that it might take you to get there. The more accurate the road map, the more likely you are to meet your goals. In setting up his goals a taxpayer and his advisors may want to make several theoretical,financial projections or need to choose between several options, before spending any money at all. A financial calculation is an invaluable tool in assisting the average taxpayer and her advisors. Below are a few of the more popular ones.

Annual Retirement Income

How much income will you have at Retirement?

Borrow to Invest

The interest on money borrowed to invest is tax-deductible. However it is often prudent to analyze the tax impact as well as the Return on investment. Is the interest more than my return of investment. How will the loan be repaid? This calculator helps the taxpayer to address these issues

Borrow for RRSP

The interest paid on money borrowed to fund an RRSP is not tax deductible. So the question of whether one should borrow for an RRSP keeps coming up over and over again. Although the interest is not deductible, in some cases, it might make good sense to borrow for an RRSP. The amount of taxes saved will depend on the taxpayer's tax bracket. Even at the lowest tax rate, the return on your investment is,initially,quite good. However, the amount saved in taxes will not completely cover the loan and he now has a debt to repay. This might affect cash flow and the RRSP funds are, technically, unavailable. Generally speaking,this could be a worthwhile transaction if the loan is paid off quickly. The longer it takes to pay the loan the more interest paid and the lower your return on investment.

Investment Return

In order to determine an accurate rate of return, when you invest, several factors must be taken into account.These factors include the interest rate or rate of appreciation, the length of time the funds are invested, inflation and the taxpayers tax bracket. If you were to invest \$10,000 at 3% for example and the inflation rate is 3%,your actual ROI will be zero. Your tax bracket will also affect the ROI, since the income earned is taxable. The type of investments will also determine how fast your wealth grows.

Financial Analyses of Net worth

Your net worth is the difference between what you own and what you owe. These financial analyses should be done on an on-going basis, but in any event at least once a year.

Present and Future Value Calculator

When you invest your money, you want an idea as to what your money will be worth at some time down the road. This calculator helps you to make informed decisions, before you invest and is closely related to your return on investment.

RRSP VS Mortgage

The question of whether one should contribute to a tax deductible retirement fund or pay down a mortgage, is sometimes not so clear cut.This calculator allows comparisons between different scenarios.

RRSP RRIF Calculators