Canadian RESP Calculator
Calculate your child's education savings growth, government CESG grants, and projected university fund. Built for Canadian RESP rules.
Your RESP Details
How to use this calculator
- Enter your child's current age and the age when they'll start school.
- Enter your annual RESP contribution (max $50,000 lifetime per child).
- Toggle CESG on — the government adds 20% on the first $2,500/year.
- Set your expected annual return.
- Click Calculate RESP.
Quick start with a preset:
Your Results
Enter your child's details and click Calculate RESP to see your education fund projection.
Projected Education Fund
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🇨🇦 Government Grant Summary
Contributions vs. Grants vs. Growth
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| Year | Child's Age | Contribution | CESG Grant | Growth | Balance |
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Understanding RESPs in Canada
🎓 What is an RESP?
A Registered Education Savings Plan (RESP) is a tax-sheltered savings account designed specifically to fund a child's post-secondary education in Canada. Contributions are not tax-deductible, but the investment grows tax-free inside the plan. When the money is withdrawn for education, it's taxed in the student's hands — and since most students have low income, the tax is minimal or zero. The biggest advantage is the Canada Education Savings Grant (CESG), which adds free government money on top of your contributions.
🇨🇦 The CESG — Free Government Money
The Canada Education Savings Grant (CESG) is the most powerful feature of an RESP. The government matches 20% of your annual contributions on the first $2,500 — that's $500 in free money each year. The lifetime CESG maximum is $7,200 per child. If you miss a year, you can carry forward one year's worth of grant room the following year. CESG is available until December 31 of the year your child turns 17, with some conditions for children over 16.
📅 Why Starting Early Matters
Opening an RESP at birth gives you 18 years of tax-free compounding and 18 years of CESG grants. At $2,500/year with a 5% return, starting at birth produces approximately $86,000 by age 18 — compared to about $36,000 if you start at age 10. Every year you delay costs significantly more than just the missed contribution — you also lose the compound growth on 18 years of future grants and returns.
💰 RESP Contribution Rules
There is no annual contribution limit, but the lifetime contribution limit is $50,000 per beneficiary. To maximize the CESG, contribute at least $2,500 per year. You can contribute more, but the CESG only applies to the first $2,500. Unused grant room carries forward, so if you contribute $5,000 in one year after missing the previous year, you can receive $1,000 in CESG (two years' worth). Contributions can be made in any combination of lump sums and regular payments.
🏛 Provincial RESP Grants
Several provinces offer additional grants on top of the federal CESG. British Columbia offers the BC Training and Education Savings Grant (BCTESG) — a one-time $1,200 grant for children born on or after January 1, 2006 who are residents of BC. Quebec offers the Quebec Education Savings Incentive (QESI), which adds 10% on the first $2,500 contributed annually. Saskatchewan previously offered SAGES, though it has been discontinued for new grants. Always check your province's current program status.
📊 What Happens When Withdrawals Begin
When your child enrols in a qualifying post-secondary program, you can start withdrawals. Your original contributions come back to you tax-free. The CESG grants and investment earnings come out as Educational Assistance Payments (EAPs) — these are taxed in the student's hands. Since most students have little other income, they often pay little or no tax on EAPs. There are annual EAP limits in the first 13 weeks ($8,000 for full-time, $4,000 for part-time), with no limits after that.
❓ Frequently Asked Questions
How much should I contribute to an RESP each year?
$2,500/year maximizes the $500 annual CESG grant. If you can't afford $2,500, contribute whatever you can — the CESG matches 20% of any amount up to $2,500. Even $1,000/year earns $200 in free government money.
What happens if my child doesn't go to post-secondary school?
You have options: transfer to a sibling's RESP, transfer up to $50,000 to your RRSP (if you have room), or close the plan. If you close the plan, you return the CESG grants, and the investment earnings are taxed as income plus a 20% penalty. The plan can stay open for 36 years, so there's no rush to close it.
Can I open an RESP for a child who is not my own?
Yes. Any Canadian resident can open an RESP for any child with a Social Insurance Number. Grandparents, aunts, uncles, and family friends can all open RESPs for a child. However, a child can only have a total of $50,000 in lifetime RESP contributions across all plans combined.
What investments can I hold in an RESP?
A self-directed RESP at a bank or discount broker can hold stocks, ETFs, mutual funds, GICs, and bonds. Most Canadians use low-cost ETFs (like XEQT or VEQT) that automatically shift to a conservative allocation as the child approaches university age. Avoid scholarship/group plans, which often have high fees and rigid rules.
Is RESP income taxable?
Your original contributions come out tax-free. The grants and investment earnings (EAPs) are taxable as income in the student's hands. Most students have little or no other income, so they pay very little or no tax on EAPs. This makes an RESP one of the most tax-efficient savings vehicles available to Canadian families.