This RESP calculator helps you estimate how your RESP savings including both contributions and grants will be able to support your child’s education.
How will a RESP help save for my child(ren) to go to school?
This registered education savings plan (RESP) calculator will help you calculate both your expected child tuition expenses as well as the savings in your RESP including grants and contributions that will help cover the cost of post-secondary education in Canada.
| Age | Contribution | CESG | Growth | Balance |
|---|
RESP contribution limits
The lifetime RESP contribution limit is $50,000 per beneficiary. There is no annual contribution limit, so you could contribute the full $50,000 in a single year if you wished. However, to maximize the Canada Education Savings Grant (CESG), the most effective strategy is to contribute $2,500 per year per child. This approach ensures you receive the maximum annual grant of $500 each year.
Contributions can be made until the end of the 31st year after the plan was opened. Any contributions beyond the $50,000 lifetime limit are subject to a 1% per month penalty tax on the excess amount. To see how your contributions can grow over time, try our compound interest calculator.
Canada Education Savings Grant (CESG)
The CESG is one of the biggest benefits of saving in an RESP. The federal government matches 20% of your annual RESP contributions up to a maximum grant of $500 per year per beneficiary. The lifetime CESG limit is $7,200 per child.
Families with a net income below approximately $55,867 may qualify for the Additional CESG, which provides a higher matching rate of 30% or 40% on the first $500 contributed each year. There is also the Canada Learning Bond (CLB), which provides up to $2,000 for children from low-income families, with no personal contributions required. These grants and bonds represent free money for your child’s education and should be maximized whenever possible.
Types of RESPs
There are three main types of RESPs available in Canada. An Individual RESP has a single beneficiary and can be opened by anyone for any child or even for themselves. A Family RESP allows multiple beneficiaries who must be related to the subscriber by blood or adoption, making it flexible for families with more than one child. A Group RESP is a pooled plan managed by a group plan dealer where contributions are combined with other investors.
Individual and Family plans are generally the most flexible and popular choices. Group plans come with stricter rules and penalties for early withdrawal, so it is important to understand the terms before enrolling. For comparing other registered savings vehicles, explore our TFSA calculator or RRSP calculator.
RESP withdrawal rules
RESP withdrawals are divided into two categories. Education Assistance Payments (EAPs) consist of the investment earnings and government grants. EAPs are taxable in the hands of the student, who typically has little to no income and pays minimal tax. Post-Secondary Education (PSE) withdrawals are the return of your original contributions and are not taxable since they were made with after-tax dollars.
There is a $8,000 limit on EAPs during the first 13 weeks of enrollment, after which there is no limit. The beneficiary must be enrolled in a qualifying post-secondary program to receive EAPs. If the funds are not used for education, grants must be repaid to the government, and investment growth withdrawn by the subscriber is taxed at their marginal rate plus a 20% penalty. Use our investment calculator to compare RESP growth with other savings options.
CESG matching rates
The Canada Education Savings Grant has tiered matching rates based on family income:
| Family Net Income (2025) | CESG Rate on First $500 | CESG Rate on Next $2,000 | Maximum Annual CESG |
|---|---|---|---|
| $55,867 or less | 40% ($200) | 20% ($400) | $600 |
| $55,867 to $111,733 | 30% ($150) | 20% ($400) | $550 |
| Over $111,733 | 20% ($100) | 20% ($400) | $500 |
Income thresholds are indexed annually. The Additional CESG (above the base 20%) applies only to the first $500 contributed each year.
The lifetime maximum CESG per beneficiary is $7,200. If you contribute $2,500 per year starting at birth, you will earn $500 annually and reach the $7,200 lifetime maximum by the time your child is about 14 or 15 years old (depending on your income level and any additional CESG received).
Canada Learning Bond (CLB)
The Canada Learning Bond provides up to $2,000 for children from low-income families, with no personal contributions required. Eligible families receive an initial $500 payment plus $100 per year for up to 15 years. The CLB goes directly into the child’s RESP and can be applied for retroactively if the child is under 21.
Provincial RESP grants
Several provinces offer additional grants on top of the federal CESG:
| Province | Grant Name | Amount | Details |
|---|---|---|---|
| British Columbia | BC Training and Education Savings Grant (BCTESG) | $1,200 one-time | Available to children born in 2006 or later; must apply when child is 6–9 years old |
| Quebec | Quebec Education Savings Incentive (QESI) | Up to $3,600 lifetime | 10% refundable tax credit on first $2,500 contributed annually; additional credit for lower-income families |
| Saskatchewan | Saskatchewan Advantage Grant for Education Savings (SAGES) | Discontinued | Program was discontinued as of December 31, 2017; no longer accepting new applications |
| Alberta | Alberta Centennial Education Savings (ACES) | Discontinued | Program was discontinued in 2015 |
If you live in British Columbia or Quebec, these provincial grants represent additional free money for your child’s education. The BCTESG requires you to apply through your RESP provider when your child is between 6 and 9 years old — a step that many parents miss.
What happens if your child does not go to school?
If your RESP beneficiary decides not to pursue post-secondary education, you have several options:
Wait it out
There is no deadline to use RESP funds. The plan can remain open for up to 35 years (40 years for a specified plan beneficiary eligible for the Disability Tax Credit). Your child may decide to attend school later.
Transfer to another beneficiary
For Family RESPs, you can transfer the plan to a sibling or other eligible family member without tax consequences or grant repayment (as long as the new beneficiary is under 21 for CESG transfers).
Accumulated Income Payment (AIP)
If the RESP has been open for at least 10 years and the beneficiary is at least 21 and not pursuing education, you can withdraw the investment growth as an AIP. This is taxed at your marginal tax rate plus a 20% penalty tax. Your original contributions are returned to you tax-free.
Roll over to your RRSP
You can transfer up to $50,000 of RESP investment earnings to your own RRSP (or your spouse’s RRSP), provided you have sufficient contribution room. This avoids the 20% penalty tax, though the amount transferred will be taxed when eventually withdrawn from the RRSP.
Grant repayment
In all non-education withdrawal scenarios, government grants (CESG, CLB, provincial grants) must be repaid to the government. Only your original contributions and investment earnings are available for withdrawal.
EAP vs contribution withdrawals
Understanding the two types of RESP withdrawals is important for tax planning:
| Feature | Education Assistance Payments (EAPs) | Post-Secondary Education (PSE) Withdrawals |
|---|---|---|
| What it includes | Investment earnings + government grants | Your original contributions |
| Taxable? | Yes — taxed in the student’s hands | No — returned tax-free |
| Tax impact | Usually minimal (students have low income) | None |
| First 13-week limit | $8,000 maximum | No limit |
| After first 13 weeks | No limit | No limit |
| Proof of enrollment required? | Yes | Yes |
The optimal withdrawal strategy is to maximize EAPs first, since students typically pay little or no tax due to the basic personal amount and tuition tax credits. Contribution withdrawals can be taken at any time during enrollment without tax consequences.
RESP investment strategies by child’s age
Your investment approach within an RESP should shift as your child gets closer to needing the funds:
| Child’s Age | Time Horizon | Suggested Approach | Example Allocation |
|---|---|---|---|
| 0–5 | 13–18 years | Aggressive growth | 80–100% equities (index ETFs) |
| 6–10 | 8–12 years | Balanced growth | 60% equities, 40% bonds |
| 11–14 | 4–7 years | Conservative growth | 40% equities, 60% bonds/GICs |
| 15–17 | 1–3 years | Capital preservation | 20% equities, 80% GICs/savings |
| 18+ | Funds being used | Safety first | 100% GICs or savings account |
The key principle is to reduce risk as the withdrawal date approaches. A stock market downturn the year before your child starts university could significantly reduce the funds available. Many robo-advisors and investment platforms offer RESP-specific portfolios that automatically adjust the asset mix as your child ages.
For comparing how different return rates affect your RESP, try our compound interest calculator. To understand the tax implications of RESP withdrawals, use our income tax calculator.
Related calculators
- TFSA Calculator — Compare RESP savings with tax-free investment growth
- RRSP Calculator — Plan tax-deferred retirement savings
- FHSA Calculator — Another tax-advantaged registered account for first-time home buyers
- Investment Calculator — Project how your investments grow over time
- Compound Interest Calculator — See the power of compounding on RESP contributions
- Income Tax Calculator — Estimate taxes on RESP withdrawals
- GIC Calculator — Compare guaranteed returns for conservative RESP investments
Open an RESP and start saving for education
The earlier you start contributing, the more time your RESP has to grow and collect government grants. You can invest commission-free and get a $25 bonus when you open an account. Learn how to get started with our step-by-step guide.