How to use the RESP calculator
- 1 Enter your child's age.
- 2 Enter your yearly contribution.
- 3 Enter an expected return.
- 4 Read the value at 18 and total grants.
Worked example
Starting when your child is 2 with $2,500 a year at 5%. Over 16 years you contribute $40,000 and receive the full $7,200 of grants. The RESP could be worth about $73,665 at age 18. Starting at birth instead of age 2 would add two more years of grants and growth to the account.
Getting every grant dollar
- Catch-up: unused grant room carries forward, but you can only catch up one year at a time, up to $1,000 of grant a year.
- Canada Learning Bond: children from lower-income families can get up to $2,000 with no contribution needed.
- Lifetime limit: $50,000 per child in contributions, with no yearly limit.
- Withdrawals: grants and growth are taxed in the student's hands, usually at a low rate; your contributions come back tax-free.
Add the Canada Child Benefit to your budget, and see how a GIC could hold RESP money safely as your child nears school age.
Features
CESG included
20% grant on the first $2,500 each year.
Lifetime cap
Grants stop at $7,200 per child.
Value at 18
Contributions, grants and growth separately.
When to use it
New parents
Start early to collect every grant. See the Canada Child Benefit Calculator amount.
Catch-up
See the effect of starting later. Lock in growth with the GIC Calculator.
Grandparents
Plan gifts for education. Save more with the TFSA Room Calculator.
Budgeting
Choose a yearly amount. See your tax with the Income Tax Calculator.
Related Savings and Investing tasks
Frequently asked questions
How much is the CESG?
20% of the first $2,500 contributed each year, $500 a year, up to $7,200 per child.
Can I catch up on missed grants?
Yes. Unused grant room carries forward, and you can get up to $1,000 of grant a year by contributing $5,000.
Is there extra help for lower incomes?
Yes. The Additional CESG and the Canada Learning Bond add more for lower-income families.
What is the RESP lifetime limit?
$50,000 per child in contributions.
Are withdrawals taxed?
Grants and growth are paid as educational assistance payments, taxed in the student's hands, who usually pays little or no tax.
What if my child does not study after high school?
Contributions come back to you tax-free. Grants are repaid, and growth can go to an RRSP or be taxed with a 20% penalty.
Family or individual RESP?
A family plan can cover several siblings and share the grant money, which helps if one child does not go to school.
What can the money pay for?
University, college, trade school, apprenticeships and other qualifying programs, full or part time, in Canada or abroad.
When should I contribute?
Early in the year if you can, so the money and the grant have longer to grow.
Do provinces add grants?
Quebec adds its own grant, and BC offers a one-time grant for eligible children.
What is the Canada Learning Bond?
A government payment of up to $2,000 for children from lower-income families, paid into an RESP even if you contribute nothing.
How long can an RESP stay open?
Up to 35 years after it is opened, or 40 years for a specified plan.
Can I open an RESP for myself?
Yes. Adults can open an RESP for their own studies, but grants are only paid for children up to the end of the year they turn 17.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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