RESP Calculator
Calculate your Registered Education Savings Plan growth, CESG government grants ($500/year), and projected post-secondary education fund.
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How to use this calculator
- 1
Contribute at least $2,500/year to maximize the $500 basic CESG grant (20% match on first $2,500).
- 2
Lower-income families get additional CESG: up to $100/year (income below $55,867) or $50/year (income $55,867–$111,733).
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Lifetime CESG limit is $7,200 per child — reached after contributing $2,500/year for 14-15 years.
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RESP lifetime contribution limit is $50,000 per beneficiary — no annual limit beyond CESG optimization.
Frequently asked questions
What is the CESG and how does it work?
The Canada Education Savings Grant (CESG) is a government grant that matches 20% of your first $2,500 in annual RESP contributions — giving you $500/year free. The lifetime CESG limit is $7,200 per child. Additional CESG (10% or 20% on the first $500) is available for lower-income families. CESG is paid directly into the RESP account by the government.
What happens if I don't use the RESP for education?
If your child doesn't pursue post-secondary education: CESG grants must be repaid to the government. Your own contributions can be withdrawn tax-free. Investment earnings can be transferred to your RRSP (up to your available room) or withdrawn as AIP (Accumulated Income Payment) — taxed at your marginal rate + 20% penalty. Alternatively, name another eligible beneficiary.
What qualifies as post-secondary education for RESP?
RESP can fund: university and college (full-time or part-time), trade/vocational schools, apprenticeship programs, and even some courses outside Canada. Programs must be at least 3 weeks long (full-time) or 12 months (part-time). The student receives funds as Educational Assistance Payments (EAP) — taxed at the student's rate, usually very low due to basic personal amounts.
When should I start an RESP?
Start as early as possible — ideally at birth. If you open an RESP before the child turns 1 and contribute $2,500/year, by age 18 you'll have earned the full $7,200 in CESG grants. Starting at age 5 instead of birth costs about $2,000 in missed CESG. Opening at birth also allows unused CESG room to carry forward one year.
RESP Calculator 2024 — CESG grant, contribution room & education fund
Maximizing the RESP: the $500/year government grant
The CESG gives you $500 free government money for every $2,500 contributed annually — a guaranteed 20% return on the first $2,500, risk-free. Over 14 years: $35,000 contributed + $7,000 CESG + investment growth. At 6% return: ~$80,000 available at age 18. A 4-year university degree in Canada costs $60,000-$100,000 (tuition + living). RESP + CESG can cover most or all of it.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →