RESP Calculator

How the CESG grant works

The Canada Education Savings Grant is the reason an RESP beats a plain savings account for education. The federal government matches 20% of the first $2,500 you contribute each year, which is $500 of free money annually, up to a lifetime maximum of $7,200 per child. It is paid directly into the RESP regardless of your family income, and it is available until December 31 of the year your child turns 17.

Missed a few years? Unused grant room carries forward, and you can catch up one year at a time: contribute $5,000 in a single year and you can earn up to $1,000 in CESG, $500 for the current year plus $500 of catch-up. The calculator above applies this rule automatically. The official details are on the Government of Canada's CESG page.

The $2,500 sweet spot

$2,500 a year, about $208 a month, is the number to remember. It captures the entire annual grant, and it is low enough that most families can sustain it for 17 years. Here is what different monthly amounts earn in grant money:

Monthly contribution	Per year	CESG per year
$100	$1,200	$240
$208.33	$2,500	$500, the full grant
$300	$3,600	$500, grant maxed
$416.67	$5,000	Up to $1,000, with catch-up room

Notice the pattern: everything above $2,500 a year grows tax-sheltered but earns no extra grant, while everything below it leaves government money unclaimed. If you can only do $100 a month right now, do that, the unused grant room waits for you, and catching up later still puts real dollars back on the table.

The $50,000 lifetime contribution limit

Each beneficiary has a $50,000 lifetime contribution limit across every RESP in their name, tracked by their SIN. Go over it and the excess is charged 1% per month until withdrawn. At $2,500 a year for 18 years you land at $45,000, comfortably under the ceiling, which is another reason the sweet spot works so well.

What to hold inside an RESP

An RESP is a wrapper, not an investment. With a newborn and 17 years of runway, many Canadian families hold a single globally diversified equity ETF and leave it alone, then shift toward bonds as university approaches. Our best RESP ETF by age guide walks through that glide path year by year, and RESP investing with XEQT covers the one-fund version specifically. If you already have an RESP somewhere expensive, the RESP transfer guide shows how to move it without losing grants.

What if my child does not go to school?

This is the fear that stops people from opening an RESP, and it is smaller than it looks. Your contributions come back to you tax-free no matter what. The CESG goes back to the government. The growth can be transferred into your RRSP, up to $50,000 lifetime, if you have the room, or withdrawn with tax plus a 20% penalty. And a plan can stay open for up to 36 years, which covers a very late bloomer.

Extra help for lower-income families

Two programs stack on top of the basic grant. The Additional CESG adds an extra 10 to 20% on the first $500 contributed each year for modest incomes, and the Canada Learning Bond pays up to $2,000 with no contribution required at all. The calculator above models only the basic 20% CESG, so if either applies to you, treat its grant figure as the floor rather than the ceiling.

Common questions

How much should I contribute to an RESP?

$2,500 a year, or about $208 a month, captures the full $500 annual CESG grant, and that is the sweet spot most families aim for. Contributing more still grows tax-sheltered but earns no extra grant. Contributing less leaves free government money unclaimed, although unused grant room carries forward so you can catch up one year at a time.

What is the CESG grant?

The Canada Education Savings Grant matches 20% of the first $2,500 you contribute each year, up to $500 annually and $7,200 lifetime per child. It is paid directly into the RESP regardless of family income, and it is available until December 31 of the year the beneficiary turns 17.

Can I catch up on missed CESG grants?

Yes, one year at a time. Unused grant room carries forward, so contributing $5,000 in a single year can earn up to $1,000 in CESG: $500 for the current year plus $500 of catch-up. Starting late still beats never starting, because grants and growth compound once the money is inside the plan.

What is the RESP lifetime contribution limit?

You can contribute a lifetime maximum of $50,000 per beneficiary, across every RESP in their name, tracked by their SIN. Contributions beyond that are charged a 1% per month penalty tax until withdrawn. The calculator above stops counting contributions once you hit $50,000.

What happens to an RESP if my child does not go to school?

Your contributions come back to you tax-free, and the CESG is returned to the government. The investment growth can be transferred to your RRSP, up to $50,000 lifetime, if you have the room, or withdrawn with tax plus a 20% penalty. A plan can also stay open for up to 36 years.

What can RESP money be used for?

Educational Assistance Payments cover tuition, books, housing, transportation, and other reasonable post-secondary expenses at accredited programs, including university, college, CEGEP, and trade schools in Canada or abroad. Full-time students face a $5,000 EAP cap in the first 13 weeks; part-time students $2,500.

Is there an RESP contribution deadline?

There is no fixed annual deadline like the RRSP. Contributions count in the calendar year they are made, and CESG is paid on that year's contributions. The real deadline is December 31 of the year your child turns 17, after which no new grants are paid.

Do lower-income families get extra grants?

Yes. The Additional CESG adds 10 to 20% on the first $500 contributed each year for modest incomes, and the Canada Learning Bond pays up to $2,000 with no contribution required at all. This calculator models only the basic 20% CESG, so treat its grant figure as the floor, not the ceiling.