Glossary

Financial planning terms

Short explanations of terms used across OpenBook Planning calculators, references, articles, and reports.

How to use this glossary

Plain terms, calculation context

These pages explain what a term usually means, how it appears in OpenBook calculators, and which assumptions or limitations commonly matter. They are educational explanations, not official legal, tax, accounting, mortgage, or investment definitions.

Term list

Core terms

Present valueThe estimated current value of a future amount after discounting at a stated rate.Formula concept Future valueThe estimated later value of a current amount, contributions, or both after applying growth.Formula concept Taxable incomeIncome after deductions. Many OpenBook tax calculators start from this amount.Tax term Marginal tax rateThe tax rate applied to the next dollar of a stated income type.Tax term Eligible dividendA Canadian taxable dividend category with enhanced gross-up and dividend tax credit treatment.Tax term Non-eligible dividendA Canadian taxable dividend category often used for dividends that do not qualify as eligible dividends.Tax term Capital gainAn increase realized on disposition when proceeds exceed adjusted cost base and selling costs.Tax term OAS recovery taxThe formal tax term behind the common phrase OAS clawback.Benefit and tax term Mortgage stress testA mortgage qualification comparison using a qualifying rate that may be higher than the contract rate.Mortgage term

Reference paths

Related reference areas

Categories

Taxation Retirement rules Government benefits Housing and education

Related references

Reference Centre Labels and review terms Projection assumptions 2026

Use carefully

Educational limits

Glossary pages simplify technical terms so they can be used consistently across calculators and educational content. A term may have a more specific meaning in tax law, pension legislation, mortgage underwriting, investment reporting, or another source document.