Is it Smith Manoeuvre or Smith Maneuver?

Both spellings are correct! 'Smith Manoeuvre' is the Canadian/British spelling, while 'Smith Maneuver' is the American spelling. This calculator works for both variations of this Canadian tax strategy.

What is the Smith Manoeuvre Calculator?

Our free Smith Manoeuvre calculator helps Canadian homeowners analyze the tax benefits of converting mortgage debt into tax-deductible investment debt using a HELOC (Home Equity Line of Credit).

Who can use this Smith Manoeuvre tool?

Any Canadian homeowner with a re-advanceable mortgage or HELOC can use this calculator to project potential tax savings and investment returns from the Smith Manoeuvre strategy.

Smith Manoeuvre Calculator | Smith Maneuver Tool Canada

📈 Total Investment Portfolio

💰 Total Tax Savings

🚀 Net Benefit vs Traditional

📊 ROI on Borrowed Capital

🎉 You just discovered a potential advantage!

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Year	Principal Payment	Mortgage Balance	HELOC Balance	HELOC Interest	Tax Refund	VDY Allocation	VGV Allocation	Total Portfolio	Net Worth

🏠 Traditional Mortgage

Final Net Worth $1,000,000

Total Interest Paid

Investment Portfolio $0

Tax Savings $0

Mortgage Free Year

📈 Smith Manoeuvre

Final Net Worth

Investment Portfolio

Total Tax Savings

Net HELOC Cost (After Tax)

Net Benefit

Effective Borrowing Rate

Investment Returns: VDY ETF returns are based on historical Canadian dividend ETF performance. VGV is used as proxy for Government bond returns and are based on historical performance.

Re-advanceable Ratio: 1 (100% of principal payments)

Investment Cadence: Monthly

Risk Profile Strategy: Dynamic allocation based on selected profile

Tax Deductibility: All HELOC interest is assumed to be tax-deductible. Consult with a tax professional to ensure compliance with CRA guidelines.

Interest Rates: Mortgage and HELOC rates are assumed to remain constant. In reality, rates fluctuate with market conditions.

Investment Returns: Compounded annually

HELOC Interest: Compounded monthly and tax-deductible

Risk Management: The strategy involves leveraged investing which amplifies both gains and losses. Market volatility can significantly impact results.

Rebalancing: The allocation between VDY and VGV is rebalanced according to your risk profile as the portfolio grows.

Reinvestment: All dividends and tax refunds are assumed to be reinvested immediately into the portfolio.

This comprehensive Smith Manoeuvre calculator (also spelled Smith Maneuver) helps Canadian homeowners analyze the potential benefits of this popular tax strategy. The Smith Manoeuvre involves using a HELOC (Home Equity Line of Credit) to convert non-deductible mortgage debt into tax-deductible investment debt.

Key Features of Our Smith Manoeuvre Tool:

Free Canadian Tax Calculator: No cost, no registration required
Comprehensive Analysis: Projects tax savings, investment returns, and net worth over 25+ years
Risk Profile Options: Conservative, Moderate, and Aggressive investment strategies
Real-time Calculations: Instant results as you adjust parameters
Mobile-Friendly: Works perfectly on all devices

How the Smith Manoeuvre Works:

The Smith Manoeuvre is a legal Canadian tax strategy where homeowners use their mortgage principal payments to borrow equivalent amounts through a HELOC for investment purposes. The HELOC interest becomes tax-deductible, while the investments potentially generate returns and dividends.

Who Can Use This Calculator:

Canadian homeowners with re-advanceable mortgages
Property owners considering the Smith Manoeuvre strategy
Financial advisors helping clients with tax planning
Anyone curious about leveraged investing in Canada

Disclaimer: This calculator is for educational purposes only. Always consult with qualified financial and tax professionals before implementing any investment strategy.

Smith Manoeuvre Calculator

⚠️ Input Error

🧮 Calculating your Smith Manoeuvre strategy...

Input Parameters

🏡 Mortgage Details

💰 HELOC & Investment Parameters

📈 Total Investment Portfolio

💰 Total Tax Savings

🚀 Net Benefit vs Traditional

📊 ROI on Borrowed Capital

🎉 You just discovered a potential advantage!

📋 Year-by-Year Analysis

⚖️ Strategy Comparison

🏠 Traditional Mortgage

📈 Smith Manoeuvre

🔍 How the Calculation Works

📋 Smith Manoeuvre Calculation Assumptions

About This Smith Manoeuvre Calculator

Key Features of Our Smith Manoeuvre Tool:

How the Smith Manoeuvre Works:

Who Can Use This Calculator:

⚠️ Input Error

🧮 Calculating your Smith Manoeuvre strategy...

Input Parameters

🏡 Mortgage Details

💰 HELOC & Investment Parameters

📈 Total Investment Portfolio

💰 Total Tax Savings

🚀 Net Benefit vs Traditional

📊 ROI on Borrowed Capital

🎉 You just discovered a potential advantage!

📋 Year-by-Year Analysis

⚖️ Strategy Comparison

🏠 Traditional Mortgage

📈 Smith Manoeuvre

🔍 How the Calculation Works

📋 Smith Manoeuvre Calculation Assumptions

About This Smith Manoeuvre Calculator

Key Features of Our Smith Manoeuvre Tool:

How the Smith Manoeuvre Works:

Who Can Use This Calculator:

📜 Legal Disclaimer & Terms of Service