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Compliance & Interest Costs

Corporate Instalment Interest & Penalty Calculator

Instalment interest compounds daily, not once at year-end. A shortfall sitting for three months costs more than a flat annual rate suggests.

Reading This Tool

How To Use This Calculator

Enter the required instalment, what was actually paid, how many days the shortfall was outstanding, and the current CRA arrears rate.

The prescribed arrears rate applies to any deficient or late instalment, compounding daily from the date it was due. This rate is set quarterly and is the same rate that applies to unpaid income tax balances generally.

Your Inputs

The arrears rate is reviewed and published quarterly and moves with the base prescribed rate plus four percentage points. Confirm the current quarter's rate before relying on this for a precise number.

Instalment Interest Owing

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Interest Owing (Daily Compounding)

$0

Shortfall Amount

$0

Effective Cost Vs. Simple Interest

$0

Required vs. Paid vs. Interest Accrued

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CRA also offers instalment interest offset relief in specific situations, and a contra-interest credit for early or excess instalments in the same year, neither modeled here. This is an estimate for planning purposes, not a substitute for an actual CRA statement of account.

Not sure if instalments are even required this year?