Leverage Calculators

HELOC investment strategy.

Analyse borrowing from your HELOC to invest in the market. Calculate the spread between investment returns and after-tax borrowing costs, breakeven points, and net benefit over time.

Inputs

HELOC details

Available HELOC amount

HELOC interest rate

Current variable rate (prime + margin).

Investment amount

Can be less than your available HELOC.

Investment assumptions

Expected annual return

Dividend yield

Investment horizon

Annual MER / fees

Tax details

Annual income

Province / territory

Interest-only payments (standard HELOC) HELOCs are typically interest-only; principal balance stays constant.

Result

Fill the form and press Analyse.

Understanding HELOC investment leverage

A HELOC investment strategy borrows against your home equity to invest in income-producing assets. The CRA allows interest on money borrowed to earn investment income to be deducted (line 22100), so the effective borrowing cost is reduced by your marginal tax rate. A positive "spread" between investment return and after-tax HELOC cost compounds over time.

Key risks: rising HELOC rates flip the spread negative; market downturns hurt the portfolio while the loan balance stays the same; sequence-of-returns risk hits hardest early; CRA may challenge deductibility for non-dividend-paying growth stocks.

Disclaimer

Educational estimates only. Leveraged investing can lead to losses larger than your original capital. Consult a licensed financial advisor and tax professional.