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CPP vs Investing Calculator (2026)
If you pay yourself dividends instead of salary, you skip CPP. See what the saved contributions could pay each month next to the CPP pension you would give up.
Enter your age and salary to see the result.
CPP pension
- From base CPP
- From the enhancement and CPP2
- Start age adjustment
Investing
- Saved each year
- Portfolio at start age
- Paid out for
Both amounts are before tax and in today's dollars. CPP is paid for life and rises with inflation. Investment returns are not guaranteed, and this payout stops at age 95.
Estimate based on 2026 rules. Not tax advice.
How it's calculated
- The yearly saving is the CPP and CPP2 that you and your corporation would pay on this salary, less the tax relief you give up by not paying it.
- That relief is the credit on base CPP, the deduction for the enhanced part and CPP2, and the corporate deduction for the employer share. All three use your province's rates.
- The saving is invested at your return less inflation of 2%, so every figure is in today's dollars. Contributions go in at the end of each year until your CPP start age.
- The portfolio then pays a level monthly amount from your start age to age 95. That amount is compared with the extra CPP pension those years would have earned.
- Years you have already paid into CPP stay on your record either way, so only future years are compared. They change the base pension, which counts up to 39 years, but not the portfolio.
Frequently asked questions
How much CPP do I skip by paying dividends?
Dividends carry no CPP. On a salary at or above the yearly maximums, you and your corporation each skip the full CPP and CPP2 contribution shown in the rates above.
Does CPP give me a tax break?
Yes, in three ways. The base part of your own contribution earns a tax credit. The enhanced part and CPP2 are deducted from your income. Your corporation also deducts its half. Skipping CPP gives all three up, so the calculator takes them off the yearly saving.
Why does the calculator only count future years?
Years you have already paid into CPP stay on your record whichever route you choose, so they cannot favour either side. Only the years still ahead change the result.
How does the start age change the pension?
The pension is cut 0.6% for each month you start before 65, which is 36% lower at 60. It rises 0.7% for each month you start after 65, which is 42% higher at 70.
What does this comparison leave out?
It ignores tax on both sides, investment fees beyond the return you enter, and the risk of a market fall. CPP is paid for life, while the payout here stops at 95. Treat the result as one input, not a recommendation.
Talk to a Swift accountant
A Swift accountant can help you plan how to pay yourself and save for retirement.