Canadian RESP Calculator
Calculate your RESP savings with CESG government grants. Lifetime limit: $50,000. CESG max: $7,200 in free grants.
Your RESP Details
CESG is available until the end of the calendar year the child turns 17.
$208.33/month ($2,500/year) maximizes the annual CESG grant of $500.
Lifetime CESG max is $7,200 per child. Check your RESP statements for this amount.
Families earning under ~$55,867 get an extra 20% CESG on the first $500. Under ~$111,733 get an extra 10%.
RESP Key Facts
- Lifetime contribution limit: $50,000 per child
- No annual contribution limit
- CESG: 20% match on first $2,500/year = $500/year max
- Lifetime CESG max: $7,200
- Returns compound monthly in this calculator
Projected RESP at Age 18
4-Year Degree Coverage
Gap to cover: $20,911. Consider increasing monthly contributions or starting earlier.
Year-by-Year Breakdown
| Age | Contribution | CESG | Growth | Balance |
|---|---|---|---|---|
| 3 | $2,500 | $500 | $70 | $3,070 |
| 4 | $2,500 | $500 | $329 | $6,329 |
| 5 | $2,500 | $500 | $789 | $9,789 |
| 6 | $2,500 | $500 | $1,463 | $13,463 |
| 7 | $2,500 | $500 | $2,363 | $17,363 |
| 8 | $2,500 | $500 | $3,504 | $21,504 |
| 9 | $2,500 | $500 | $4,900 | $25,900 |
| 10 | $2,500 | $500 | $6,568 | $30,567 |
| 11 | $2,500 | $500 | $8,523 | $35,523 |
| 12 | $2,500 | $500 | $10,784 | $40,783 |
| 13 | $2,500 | $500 | $13,369 | $46,369 |
| 14 | $2,500 | $500 | $16,299 | $52,299 |
| 15 | $2,500 | $500 | $19,595 | $58,594 |
| 16 | $2,500 | $500 | $23,279 | $65,278 |
| 17 | $2,500 | $200 | $27,375 | $72,074 |
| 18 | $2,500 | $0 | $31,890 | $79,089 |
Planning your family's finances? Calculate your TFSA growth or project your RRSP savings.
How RESPs Work in Canada
A Registered Education Savings Plan (RESP) is a tax-sheltered investment account designed to help Canadian families save for a child's post-secondary education. Contributions are not tax-deductible, but all investment growth inside the RESP is tax-deferred until the beneficiary withdraws funds for education, at which point it is taxed in the student's hands (usually at a very low rate since students typically earn little income).
Any Canadian resident can open an RESP for a child, including parents, grandparents, aunts, uncles, and family friends. The subscriber (account holder) maintains control of the account and decides when and how much to contribute. The beneficiary (the child) receives the funds for eligible post-secondary programs at universities, colleges, trade schools, and CEGEPs.
The lifetime contribution limit is $50,000 per beneficiary across all RESPs. There is no annual limit, so you could technically contribute the entire $50,000 at once. However, the optimal strategy is to contribute at least $2,500 per year to maximize the annual CESG grant. Over-contributing beyond $50,000 triggers a 1% monthly penalty tax on the excess amount.
RESPs can remain open for up to 36 years, giving families significant flexibility. Funds can be used at any eligible post-secondary institution in Canada or abroad, covering tuition, textbooks, housing, and other education-related expenses.
CESG: Free Government Money for Education
The Canada Education Savings Grant (CESG) is the single best reason to open an RESP. The federal government matches 20% of your annual RESP contributions, up to a maximum of $500 per year on the first $2,500 you contribute. Over your child's lifetime, you can receive up to $7,200 in CESG grants.
That is an immediate, guaranteed 20% return on your money before any investment gains. No other savings vehicle in Canada offers this kind of guaranteed return.
| Grant Type | Rate | Annual Max | Eligibility |
|---|---|---|---|
| Basic CESG | 20% on first $2,500 | $500 | All families |
| Additional CESG | Extra 10-20% on first $500 | $50-$100 | Income under ~$111,733 |
| Canada Learning Bond (CLB) | $500 initial + $100/year | Up to $2,000 | Low-income families (no contribution needed) |
The Additional CESG and Canada Learning Bond are income-tested. The CLB is especially valuable because it requires no personal contributions at all. Families receiving the Canada Child Benefit may be automatically eligible.
How Much Should You Save for Education?
Canadian university tuition averages about $7,500 per year in 2026, but the total cost of a 4-year degree including housing, food, textbooks, and other expenses ranges from $80,000 to $120,000 depending on the city and program. Professional programs like engineering, business, and medicine cost significantly more.
With education costs rising roughly 3-5% per year, a child born today could face total costs of $130,000 to $200,000 for a 4-year degree by 2044. Starting early and contributing consistently is the most effective strategy.
Budget Strategy
$1,200/year. Earns ~$240/yr in CESG. Projected ~$40,000 by age 18 at 6% return.
Optimal CESG Strategy
$2,500/year. Maximizes the full $500/yr CESG. Projected ~$80,000 by age 18 at 6% return.
Aggressive Strategy
$4,800/year. Same CESG as optimal, but faster growth. Projected ~$145,000 by age 18 at 6% return.
RESP Contribution Strategy Tips
Start Early and Be Consistent
Contributing $208/month from birth gives you 18 years of compound growth and 17 years of CESG eligibility. A child who starts at birth with this strategy accumulates roughly twice as much as one who starts at age 8, even with the same total contributions.
Prioritize the CESG Sweet Spot
Always contribute at least $2,500/year to get the full $500 CESG. Contributing more than $2,500 still grows tax-sheltered, but you will not receive additional CESG. If you have extra savings, consider maxing TFSA or RRSP contributions alongside your RESP.
Front-Loading vs. Steady Monthly
Contributing $2,500 on January 1 each year gives your money 12 extra months of growth compared to spreading it out monthly. Over 18 years, this timing advantage can add several thousand dollars. However, steady monthly contributions ($208/month) are easier to budget and still capture the full CESG.
Catch-Up on Missed Years
If you missed earlier years, you can carry forward unused CESG room. The government allows up to $1,000 in CESG per year (on $5,000 in contributions) when catching up. This means contributing $5,000/year lets you recover one missed year of CESG per year.
Frequently Asked Questions
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