| Alberta |
|
75,000
Taxable Income
Enter the taxable income amount from line 260 of your personal income tax return. |
Interest rate on debt
|
7.99%
Input Error: Interest rate on debt
The maximum value you can enter is 30%. |
| After-tax cost of debt |
7.99%
|
Rate of return
|
6.00%
Input Error: Rate of return
The maximum value you can enter is 15%. |
|
Rate of return breakdown:
|
Rate of return breakdown
This shows how the rate of return for the taxable investment is broken down between Interest, Eligible Dividends and Capital Gains. For example, the return on a savings account would typically be 100% interest. The return for a mutual fund with stock and bond holdings could be made up of Interest, Eligible Dividends and Capital Gains. |
Interest
|
33.33%
|
|
33.33%
|
| Capital Gains |
33.40%
Input Error: Rate of return breakdown
The percentage figures for interest, dividends and capital gains do not add up to 100%. Please correct your entries. |
| After-tax rate of return |
6.00%
|
Pay down debt
After-Tax Cost of Debt
After-Tax Rate of Return
Assumptions
Calculations use marginal tax rates as of January 2019. Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.
Disclaimer
This calculator is for educational purposes only. All charts and illustrations are for illustrative purposes only and are not intended to illustrate the performance of any security or portfolio. You should not rely on the results as an indication of your financial needs and we recommend that you seek your own financial, investment, tax, legal or accounting advice nor shall the information herein be considered as investment advice or as a recommendation to enter into anytransaction. Professional advice should be obtained prior to acting on the basis of this information. The deduction of advisory fees, brokerage or other commissions and any other expenses that would have been paid may not be reflected in the calculation results. ©Copyright 2019 Ativa Interactive Corp. All rights reserved. Powered by Ativa.com.
Calculations use marginal tax rates as of January 2019. Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.
Disclaimer
This calculator is for educational purposes only. All charts and illustrations are for illustrative purposes only and are not intended to illustrate the performance of any security or portfolio. You should not rely on the results as an indication of your financial needs and we recommend that you seek your own financial, investment, tax, legal or accounting advice nor shall the information herein be considered as investment advice or as a recommendation to enter into anytransaction. Professional advice should be obtained prior to acting on the basis of this information. The deduction of advisory fees, brokerage or other commissions and any other expenses that would have been paid may not be reflected in the calculation results. ©Copyright 2019 Ativa Interactive Corp. All rights reserved. Powered by Ativa.com.
Pay Down Debt or Invest?
Should you pay down or invest if you have extra money?
| Where do you live? | Alberta | Investment | |
| Taxable income: | $75,000 | Rate of return | 6.00% |
| Taxable? | No | ||
| Debt | Rate of return breakdown: | ||
| Interest rate on debt: | 7.99% | Interest | 33.33% |
| Tax deductible: | No | Eligible dividends | 33.33% |
| After-tax cost of debt: | 7.99% | Capital gains | 33.34% |