An RESP (Registered Education Savings Plan) is a Canadian tax-advantaged account that helps families save for a child’s post-secondary education. Contributions grow tax-deferred, and the government may add grants like the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).

How much does the government contribute to an RESP?

The basic CESG is 20% of annual contributions up to $500 per year and $7,200 lifetime per beneficiary. Low- and middle-income families may receive additional CESG and the Canada Learning Bond (CLB). Exact eligibility depends on family income and residency rules.

Is RESP growth taxable?

Contributions to an RESP are not tax-deductible and can be withdrawn tax-free. Investment growth and government grants are taxable in the student’s hands when paid out as Educational Assistance Payments (EAPs), often at a low tax rate because students usually have little income.

What is the lifetime RESP contribution limit?

The current lifetime contribution limit is $50,000 per beneficiary. There is no annual contribution limit, but CESG is only paid on up to $2,500 of contributions per year (with some room for catch-up).

RESP Calculator – Registered Education Savings Plan Growth & Withdrawal Planner

Study Year	Total Withdrawal	From Contributions	From Grants + Growth (EAP)
Run the calculator to see a withdrawal schedule.

How this RESP calculator works

This RESP calculator is designed for Canadian families who want a realistic, easy-to-understand projection of how a Registered Education Savings Plan can grow over time. It focuses on:

Your ongoing contributions (monthly or annual)
Estimated federal grants (CESG and CLB)
Approximate provincial grants (where applicable)
Investment growth after fees
A simple withdrawal schedule once your child starts school

Key assumptions and formulas

The calculator uses a yearly projection model with the following steps:

Determine the number of contribution years:
yearsToContribute = max(0, min(startAge, 17) - childAge)

We cap contributions at age 17 because CESG is generally only paid until the end of the year the beneficiary turns 17.
Convert contributions to an annual amount:
annualContribution = (contributionType == "monthly") ? monthlyAmount × 12 : annualAmount
Estimate CESG (Canada Education Savings Grant):

We approximate CESG as:


                  basicCESG = 20% × min(annualContribution, 2,500)

                  extraCESG (low income) ≈ 20% × min(annualContribution, 500)

                  extraCESG (middle income) ≈ 10% × min(annualContribution,
                  500)

                  lifetimeCESG cap = 7,200 per beneficiary

Actual CESG amounts depend on precise income thresholds and contribution history; this tool provides an estimate only.

Canada Learning Bond (CLB) approximation

For low-income families, we approximate the Canada Learning Bond as:

CLB ≈ 500 in the first year + 100 per year thereafter, up to
                  a lifetime maximum of 2,000

CLB does not require contributions, but for simplicity we add it during the contribution years until the cap is reached.

Provincial grants (simplified)

Quebec (QESI): approximated as 10% of eligible contributions up to $250 per year, with a lifetime cap of $3,600.
British Columbia (BCTESG): approximated as a one-time $1,200 grant at age 6 (if within your contribution window).

Other provincial programs are not modeled; choose “Other / no additional provincial grants” if unsure.

Investment growth after fees

You enter a gross expected return and an annual fee (MER). The calculator uses a net return:

netReturn = max(0, returnRate − feeRate)

Each year, the RESP balance is updated as:

balance_new = (balance_old +
                  contributions + grants) × (1 + netReturn)

Withdrawal schedule and EAPs

At the start of school, the calculator splits the RESP into:

Contributions (your deposits) – can be withdrawn tax-free.
Grants + growth – paid out as Educational Assistance Payments (EAPs), taxable to the student.

For the illustrative schedule, we simply divide the total RESP value evenly across the selected number of study years, and assume withdrawals are taken proportionally from contributions vs. grants + growth.

RESP basics: what you should know

What is an RESP?

An RESP is a tax-advantaged savings account for post-secondary education in Canada. Key features:

Contributions are not tax-deductible, but grow tax-deferred.
The federal government adds grants (CESG, CLB) based on contributions and family income.
Withdrawals for education are split into:
- Post-Secondary Education (PSE) withdrawals – your contributions, tax-free.
- Educational Assistance Payments (EAPs) – grants and growth, taxable to the student.

Contribution and grant limits

Lifetime contribution limit: $50,000 per beneficiary.
CESG annual limit: 20% of up to $2,500 in contributions ($500 per year), with some catch-up room.
CESG lifetime limit: $7,200 per beneficiary.
CLB lifetime limit: $2,000 per eligible child.

Our calculator tracks these caps in the projection so you can see when you are likely to max out the grants.

Interpreting your results

When you run the calculator, focus on:

Total RESP at school start: the projected amount available when your child begins post-secondary education.
Breakdown by source: how much comes from your contributions vs. government grants vs. investment growth.
Annual withdrawals: whether the projected yearly amount is likely to cover tuition, housing, and other costs.

Remember that investment returns are uncertain. It’s wise to run multiple scenarios (e.g., 3%, 5%, 7% returns) and review them with a qualified financial advisor.

Frequently asked questions about RESPs

Can I catch up on missed RESP contributions?

You can generally catch up on one year of unused CESG room per year, meaning you can receive up to $1,000 of CESG in a single year (on $5,000 of contributions). Our calculator does not model detailed catch-up rules, but you can approximate by increasing contributions for a few years.

What happens if my child doesn’t go to school?

Options may include:

Transferring the RESP to another eligible beneficiary.
Withdrawing contributions tax-free (but you may have to repay grants).
Withdrawing accumulated income as an Accumulated Income Payment (AIP), which is taxable and may be subject to an additional tax unless transferred to an RRSP (subject to conditions).

Rules are complex; always confirm with your RESP provider or a tax professional.

Is this RESP calculator official?

No. This is an educational planning tool. It uses simplified assumptions about grants, income thresholds, and returns. For official rules and eligibility, consult:

Government of Canada – Education savings
Your RESP provider and a licensed financial advisor

RESP Calculator (Registered Education Savings Plan)

Projection Summary

Total RESP at school start

Illustrative Withdrawal Schedule