RESP Calculator Canada

What the RESP calculator does

A Registered Education Savings Plan is the main tax-assisted way Canadian families save for a child’s post-secondary education, and it comes with government money. The calculator shows your contributions, the Canada Education Savings Grant they earn and the compounded growth until the child starts school, applying the grant caps and the lifetime contribution limit year by year.

How the grant works

The basic CESG matches 20% of your contributions, with two limits:

• An annual cap of $500, so a very large contribution in one year earns no more than that.
• A lifetime cap of $7,200 per child, after which no more grant is paid.

The calculator works out the match on each year’s contribution and trims it to the annual cap and the remaining lifetime room, which is why a steady yearly amount usually beats a single large deposit.

A worked example

Contributing $2,500 a year for 18 years at a 5% return puts in $45,000. The plan collects the $500 grant every year until the $7,200 lifetime maximum is reached, adds about $30,274 of growth, and is projected to reach about $82,474.

Start later and both the grant and the growth shrink. Ten years of the same contribution give $25,000 of contributions, $5,000 of grant and about $37,734 in total; five years give $12,500, $2,500 of grant and about $16,577. A single $10,000 deposit earns only $500 of grant that year, the same as a $2,500 deposit.

Tax-sheltered growth

Investment income in the plan is not taxed as it builds, so contributions, grants and growth compound together. When money comes out for education, growth and grant are taxed in the student’s hands, often at little or no tax because students usually have low incomes. Your own contributions come back tax-free, since they were made with after-tax dollars.

Reading the projection sensibly

The expected return is an assumption, and markets vary. Try a cautious return beside an optimistic one. In the early years the grant and your contributions matter more than the return, and unlike market returns the grant is near-certain as long as you contribute enough to earn it.

Provincial grants and the Canada Learning Bond

The CESG is federal. Quebec adds the Quebec Education Savings Incentive, paid as a refundable tax credit into the plan, and British Columbia has a one-time grant; other provinces have run programs in the past. The calculator projects the federal CESG only, so a plan in a province with its own incentive can grow faster than shown. Lower-income families may also qualify for the Canada Learning Bond, paid without any contribution.

Common mistakes to avoid

• Contributing a large lump sum in one year and expecting a proportional grant; the match on the excess is lost that year.
• Waiting until the child is a teenager, which gives up years of grant and compounding.
• Assuming the whole balance is yours to spend tax-free. Growth and grant are taxable to the student on withdrawal, and grant may have to be repaid if the child does not pursue eligible studies.

Setting the plan up

Opening an RESP requires a Social Insurance Number for you and the child. A family plan can name more than one beneficiary, so grant and growth can be shared among siblings. Grant and contribution room are tracked per child across every plan in their name, so confirm what remains with your plan provider.

Things to keep in mind

The grant rate, its caps and the lifetime contribution limit are set by the government and can change, and the calculator uses maintained figures. Additional grants for lower-income families and provincial incentives are not included. Rules for older children and withdrawals depend on your situation, so confirm the specifics with your plan provider.

This information is general in nature and is not financial advice.

About This RESP Calculator

Use this RESP calculator to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.