RESP (Canada)
How to Use This RESP Calculator
This calculator projects a Canadian Registered Education Savings Plan balance at age 18, including the 20% Canada Education Savings Grant (CESG) match and enhanced low-income matching.
How It’s Calculated
Annual Contribution + 20% CESG (up to $500/year, $7,200 lifetime max) + Investment Growth, compounded annually to age 18
Contributing $2,500 per year is the sweet spot, since that fully captures the annual CESG grant.
Example
Contributing $2,500 per year from birth (which maximizes the annual CESG grant) with a 5% return grows to roughly $80,000 or more by age 18, of which about $14,400 came from CESG grants alone.
Frequently Asked Questions
How much does the government contribute to an RESP?
The basic CESG matches 20% of annual contributions up to $500 per year per child, with a lifetime maximum of $7,200. Low-income families may qualify for additional grants.
What happens to RESP grants if my child doesn’t attend post-secondary?
CESG grant money must be returned to the government if unused. Your original contributions can be withdrawn tax-free, but growth is taxed as income to the contributor if not used for education.
Is there a maximum RESP contribution?
Yes — a $50,000 lifetime contribution limit per beneficiary, though there’s no annual cap. Only the grant matching is capped annually.