RESP calculator Canada with the CESG grant
An RESP turns your education savings into a 20% guaranteed return — the government matches your contributions with the Canada Education Savings Grant. Enter your child's age and what you save to project the value at 18, the free grant money you'll collect, and whether you're capturing the full match.
Your numbers
Return assumption
Year-by-year projection
Your contribution, the CESG grant it earns, and the plan's balance at the end of each year to age 18.
| Age | Contribution | CESG grant | Year-end balance |
|---|---|---|---|
| 6 | $2,520 | $500 | $13,801 |
| 7 | $2,520 | $500 | $17,830 |
| 8 | $2,520 | $500 | $22,102 |
| 9 | $2,520 | $500 | $26,629 |
| 10 | $2,520 | $500 | $31,428 |
| 11 | $2,520 | $500 | $36,515 |
| 12 | $2,520 | $500 | $41,907 |
| 13 | $2,520 | $500 | $47,622 |
| 14 | $2,520 | $500 | $53,681 |
| 15 | $2,520 | $500 | $60,103 |
| 16 | $2,520 | $500 | $66,910 |
| 17 | $2,520 | $500 | $74,126 |
| 18 | $2,520 | $500 | $81,775 |
How the RESP and CESG work
A Registered Education Savings Plan is the best vehicle Canadians have for saving toward a child's post-secondary education — and the reason is the Canada Education Savings Grant. The government adds 20 cents for every dollar you contribute, up to $500 a year. Nowhere else do you get a guaranteed 20% return just for showing up. On top of that, everything grows tax-sheltered, and withdrawals are taxed in the student's hands — usually at little or no tax.
CESG = 20% of contributions, up to $500/year and $7,200 per child
- $2,500/year ($208/mo) captures the full $500 annual grant.
- $50,000 lifetime contribution limit per child; no annual limit.
- Grants run until age 17 — starting early collects far more.
A worked example
Say your child is 5, you have $10,000 saved, and you contribute $210 a month at a 6% return. Each year you collect the full $500 CESG, and by age 18 the plan grows to well over $70,000 — including roughly $6,500 of free government grant money you'd never see without an RESP. Slide the monthly contribution below $208 and watch the grant — and the final value — shrink. That gap is the cost of leaving the match on the table.
Grab the full grant first
Before directing money anywhere else, contribute enough to capture the entire $500 CESG — a guaranteed 20% return beats almost any investment. If you started late or missed years, you can catch up one extra year of grant room annually by contributing up to $5,000 to claim $1,000 of CESG. Once the grant is maxed, extra savings may do better in a TFSA.
RESP vs other accounts
Where education money goes
- RESP — unbeatable for the 20% CESG match; use it first for school savings.
- TFSA — flexible backup once the grant is maxed; see the TFSA calculator.
- FHSA — for the child's own first home later; see the FHSA calculator.
Make it grow
- See compounding at work with the compound interest calculator.
- Weigh accounts with the RRSP vs TFSA guide.
- Watch fund fees — the MER calculator shows their long-run drag.
What this calculator assumes
It models the basic 20% CESG only — not the income-tested Additional CESG or the Canada Learning Bond, which can add more for lower-income families. It assumes a constant annual return, contributions made evenly through each year, and that grant room hasn't already been used up. Grants for 16- and 17-year-olds carry extra conditions. Confirm your grant room with your RESP provider.
Frequently asked questions
What is the CESG and how much can I get?
The Canada Education Savings Grant is the government's match on your RESP contributions: 20% of the first $2,500 you contribute each year, or up to $500 per year. Over the life of the plan the CESG is capped at $7,200 per child. It's essentially free money — contributing enough to grab the full grant is the single best move in an RESP.
How much should I contribute to maximize the grant?
Contribute $2,500 per year — about $208 per month — to capture the full $500 CESG. Contribute less and you leave grant money on the table; contribute more and the extra gets no match (though it still grows tax-sheltered). If you have unused grant room from past years, you can catch up by contributing up to $5,000 to claim $1,000 of CESG in a single year.
What is the RESP contribution limit?
There is no annual contribution limit, but there is a $50,000 lifetime limit per beneficiary. The grant, however, is paid only on the first $2,500 (or $5,000 with catch-up) each year, so contributing the whole $50,000 at once would forfeit most of the CESG. Spreading contributions out to grab the yearly grant almost always beats a lump sum.
Until what age can I get the CESG?
The CESG is available up to the end of the year the child turns 17. For 16- and 17-year-olds there are extra conditions — at least $2,000 must have been contributed (and not withdrawn) before the year they turned 16, or $100/year in at least four prior years. Starting early matters: a late start can miss years of grants entirely.
How is an RESP taxed?
Your contributions grow tax-sheltered. When the child enrolls in post-secondary education, withdrawals of the grant and growth — called Educational Assistance Payments — are taxed in the student's hands, usually at little or no tax because students have low income. Your original contributions come back to you tax-free, since they were made with after-tax dollars.
Is there extra help for lower-income families?
Yes. The Additional CESG adds 10–20% on the first $500 contributed each year for modest incomes, and the Canada Learning Bond pays up to $2,000 into an RESP for eligible low-income children with no contribution required. This calculator models the basic 20% CESG only — check with your provider to see if you qualify for more.
What happens to the RESP if my child doesn't go to school?
The grant portion is returned to the government, but your contributions come back to you tax-free. The growth can be withdrawn as an Accumulated Income Payment (taxed at your rate plus a 20% penalty) or, often better, transferred to your RRSP if you have room — up to $50,000. You can also keep the plan open for up to 35 years or name a different beneficiary.
Should I prioritize an RESP, TFSA, or FHSA?
For education savings the RESP usually wins because of the 20% CESG match — no other account gives you a guaranteed 20% return on contributions. Beyond grabbing the full grant, compare with our TFSA and FHSA calculators. A common plan: max the CESG first, then direct extra savings to a TFSA.
Can grandparents or others contribute?
Yes — anyone can contribute to a child's RESP, and contributions from all sources count toward the same $50,000 lifetime limit and the same grant room. Grandparents often open their own plan or contribute to the parents' plan. Coordinate so you don't accidentally exceed the limit or double up beyond the $2,500 that earns the grant.
Educational tool, not financial advice. Figures reflect the federal RESP and CESG rules as of 2026 (20% grant, $500/year and $7,200 lifetime maximums, $50,000 lifetime contribution limit). Grant eligibility and amounts depend on your situation — verify with your RESP provider or the CRA before relying on these numbers.