RESP Calculator Canada
Calculate how your Registered Education Savings Plan grows with monthly contributions, compound investment returns, and the Canada Education Savings Grant (CESG). See the total you can save for your child's post-secondary education by age 18, including government grants worth up to $7,200.
How the RESP Calculator Works
The RESP (Registered Education Savings Plan) is Canada's tax-sheltered education savings vehicle with a unique advantage: the federal government matches your contributions through the Canada Education Savings Grant (CESG). This calculator projects your RESP balance at age 18 by compounding your monthly contributions plus CESG grants at your expected return rate. All calculations run entirely in your browser with no data sent to any server.
Enter your monthly contribution amount, your child's current age, your expected annual return rate, and your family income bracket. The calculator determines your basic CESG rate (20% on the first $2,500 per year), checks whether you qualify for the Additional CESG (an extra 10-20% on the first $500 for lower-income families), and compounds everything year by year until the child turns 18. It also tracks the lifetime CESG cap of $7,200 and the $50,000 lifetime contribution limit per beneficiary.
RESP Growth Formula
Annual Contribution = Monthly Contribution × 12
Basic CESG = min(Annual Contribution, $2,500) × 20%
Additional CESG = min(Annual Contribution, $500) × Additional Rate
Year-End Balance = (Previous Balance + Annual Contribution + CESG) × (1 + Return Rate)
Where:
- Basic CESG = 20% match on first $2,500 contributed per year (max $500/year)
- Additional CESG = Extra 10-20% on first $500 for families earning under $106,717
- Lifetime CESG cap = $7,200 per child
- Lifetime contribution limit = $50,000 per beneficiary
Understanding the CESG and Additional CESG
The Canada Education Savings Grant is automatic free money from the federal government. For every dollar you contribute to an RESP, the government adds 20 cents on the first $2,500 per year, up to $500 per year in basic CESG. Over 18 years, this alone provides up to $7,200 in grants that compound alongside your contributions. To maximize the basic CESG, you need to contribute at least $2,500 per year, which works out to approximately $208.33 per month. Contributing more than $2,500 per year still grows tax-sheltered, but does not attract additional CESG matching beyond that threshold.
Lower-income families may also qualify for the Additional CESG, which provides an extra 10% or 20% match on the first $500 contributed each year. Families with adjusted income under $53,359 (2024 threshold) receive the full 20% additional rate, while families earning between $53,359 and $106,717 receive 10%. Families above $106,717 receive only the basic 20% CESG. The Additional CESG is included in the $7,200 lifetime cap. Separately, the Canada Learning Bond (CLB) provides $500 initially plus $100 per year (up to $2,000 total) for children in families receiving the National Child Benefit Supplement, requiring no personal contributions at all.
RESP Contribution Strategy for Maximum Growth
The optimal RESP strategy depends on your budget and timeline. Contributing $2,500 per year ($208.33/month) captures the full basic CESG, which is the most efficient use of each dollar contributed. If you start at birth and contribute $2,500 annually at a 6% return, the RESP reaches approximately $96,000 by age 18, including about $7,200 in CESG. If you can afford more, contributions up to the $50,000 lifetime cap grow tax-sheltered. Lump-sum catch-up contributions are possible, but the CESG only applies to the first $2,500 each year, plus up to $2,500 of unused prior-year CESG room (maximum $1,000 CESG in a catch-up year). Last updated: April 2026.
What Happens When Your Child Goes to School?
When the RESP beneficiary enrolls in a qualifying post-secondary program (university, college, trade school, or apprenticeship), Education Assistance Payments (EAPs) can be withdrawn. EAPs consist of the grants and investment growth, and are taxable in the student's hands, who typically has little or no income, making the effective tax rate near zero. Your original contributions come out tax-free since they were made with after-tax dollars. If the child does not pursue post-secondary education, you can transfer the plan to a sibling, transfer up to $50,000 of investment growth to your RRSP (if you have room), or collapse the plan with taxes and a 20% penalty on the growth. CESG and CLB amounts must be returned to the government if not used for education. The RESP must be used within 35 years of opening.
Frequently Asked Questions
What is the CESG and how much can I get?
The Canada Education Savings Grant (CESG) is a federal government program that matches 20% of your annual RESP contributions, up to $500 per year on the first $2,500 contributed. The lifetime maximum CESG per child is $7,200. To get the full $500 per year, you need to contribute at least $2,500 annually ($208.33 per month). The CESG is deposited directly into your RESP and compounds alongside your own contributions.
What is the Additional CESG for low-income families?
The Additional CESG provides an extra 10% or 20% match on the first $500 contributed to an RESP each year, depending on family income. Families with adjusted net income under $53,359 (2024 thresholds) receive an extra 20% ($100 per year), while families earning between $53,359 and $106,717 receive an extra 10% ($50 per year). Families above $106,717 receive only the basic 20% CESG. The Additional CESG counts toward the $7,200 lifetime cap.
What is the lifetime RESP contribution limit?
The lifetime RESP contribution limit is $50,000 per beneficiary. There is no annual contribution limit, so you could technically contribute the full $50,000 in one year, but the CESG only matches the first $2,500 per year plus any unused prior-year CESG room. Contributing more than $50,000 in total triggers a 1% per month penalty on the excess. Contributions are made with after-tax dollars and are not tax-deductible, but all investment growth inside the RESP is tax-sheltered until withdrawal.
What happens if my child does not go to college or university?
If the RESP beneficiary does not pursue post-secondary education, you have several options. You can transfer the plan to another eligible beneficiary, such as a sibling. You can transfer up to $50,000 of the accumulated investment income to your RRSP if you have contribution room. Or you can collapse the plan, in which case the investment growth is taxable at your marginal rate plus a 20% penalty. All CESG and CLB amounts must be returned to the government. The RESP must be used within 35 years of opening.
What is the Canada Learning Bond (CLB)?
The Canada Learning Bond is a federal grant for children in low-income families who receive the Canada Child Benefit. It provides $500 when the RESP is first opened, plus $100 per year for each year the family qualifies, up to a maximum of $2,000 per child. The CLB requires no personal contributions at all, and you just need to open an RESP to receive it. It is available for children born on or after January 1, 2004, and eligible families should open an RESP as early as possible to maximize the benefit.
Should I invest $2,500 per year or more in my RESP?
Contributing $2,500 per year captures the full basic CESG of $500 per year, making it the most efficient contribution level. Contributing more than $2,500 per year still grows tax-sheltered inside the RESP, but the extra amount does not attract any additional CESG matching. If you have extra savings beyond $2,500 per year, consider whether maximizing your TFSA or RRSP first offers better overall tax advantages before contributing additional amounts to the RESP beyond the CESG-optimized threshold.