RRSP or Extra Payment on Your Student Loan?

Which strategy will pay you more -- investing in an RRSP or making extra payments on your student loan?

You'll learn here why this original custom Debt 101 calculator can save you money.  

And here's a tip to help you use it:

You need to type in how much ‘return’ you’d expect to earn on your RRSP investment. The number you use for this ‘return’ depends on the type of RRSP investment you’d like to make.

Some 'fixed-income' investments (such as term deposits or GICs) guarantee your rate of return. With today's low interest rates, that means your RRSP return may be 2% or less. People don't choose these RRSPs for high rates of return, they choose them for safety.

Would you rather invest your RRSP in stocks or mutual funds? That's fine, but it will be harder to guess your RRSP return. So ask family or friends with these kinds of RRSPs what return you should estimate for our calculator.

Can’t decide how you'd invest your RRSP? Our calculator 'suggests' a 2.5% return. For more accurate results, you could calculate again later, using the RRSP return that fits your preferred investment.
 

After you input your information, click the "Compute" button to see which is your best choice.

 © 2009-2024 Original Calculator by Student Finance 101 Society, created by the Student Finance 101/Debt 101 calculator team based on a concept by Jeannine Mitchell.  For more information about our calculator team, see About Us. For more on our copyrights, see Legal.