RESP Calculator — Education Savings with the 20% CESG 2026
Your child's education fund from annual RESP contributions, the 20% Canada Education Savings Grant (to $7,200), additional CESG and Canada Learning Bond for lower incomes, tax-sheltered growth, the inflated cost of a program and the contribution needed to cover it.
| Your contributions | — |
|---|---|
| CESG grants (20% + additional) | — |
| Canada Learning Bond | — |
| Growth (tax-sheltered) | — |
| Cost of the program at the time | — |
| Covered / shortfall | — |
| Contribution to cover it fully | — |
| Tax on withdrawal (student) | — |
| Lifetime limits check | — |
| Catch-up tip | — |
In short
An RESP earns the 20% Canada Education Savings Grant on the first $2,500 contributed each year ($500, to a $7,200 lifetime maximum) plus tax-sheltered growth; $2,500 a year from age 2 at 5% builds about $74,000 by 18, covering roughly half of a four-year program that will cost about $134,000 — contributions come back tax-free and grants and growth are taxed to the student.
Who this is for: Parents and grandparents sizing contributions to collect the full CESG and cover a future tuition bill.
RESPs: the 20% government match and how to use it
A Registered Education Savings Plan has no deduction going in, but the government adds the Canada Education Savings Grant — 20% of the first $2,500 you contribute each year ($500), up to $7,200 per child — and the investments grow tax-free. When the child enrols in college, university or an apprenticeship, your contributions come back tax-free and the grants and growth are paid out as Educational Assistance Payments taxed in the student's hands, usually at little or no tax thanks to the tuition credit.
- Lower-income top-ups: an additional 10–20% CESG on the first $500 (family income under about $118,000 / $59,000) and the Canada Learning Bond — $500 plus $100 a year to $2,000 — with no contribution required.
- Catching up: unused grant room carries forward, but only $1,000 of CESG can be collected in a year ($5,000 of contributions), so starting at 10 cannot recover everything; grants stop after the year the child turns 17.
- Limits: $50,000 of contributions per child over the plan's life (35 years); over-contributions are taxed at 1% a month.
- Provincial extras: Quebec's QESI adds 10% (max $3,600); BC pays a one-time $1,200 Training and Education Savings Grant at age 6–9.
- No school? contributions are returned, grants repaid, and up to $50,000 of growth can move to your RRSP (if you have room) — otherwise growth is taxed plus a 20% penalty.
See also: TFSA Contribution Room & Growth Calculator, Canada Child Benefit Calculator 2026-27.
Assumptions
- Each year: contribution up to the $50,000 lifetime limit; CESG = 20% of min(contribution, $2,500 + one year of carry-forward) up to $1,000 and the $7,200 lifetime cap; additional CESG 20%/10% of the first $500 for family income under ~$59,000/~$118,000; CLB $500 + $100 a year (max $2,000) under ~$59,000.
- Balance compounds annually; grants stop at 18; cost of study = today's cost inflated to each study year.
- Required contribution solved by bisection within the $50,000 limit; student tax estimated on EAPs plus $5,000 of earnings at Ontario rates.
Worked example
16 years of contributions = $40,000; CESG of $550 a year (20% of $2,500 plus 10% additional CESG on the first $500 at this income) reaches the full $7,200 cap in the 13th year; growth about $26,800 → RESP of roughly $74,000 at 18. Four years of study will cost about $134,000 by then (3% inflation), so the plan covers 55% — and because contributions are capped at $50,000 per child, even the full limit contributed up front would reach only about $110,000; the rest comes from other savings, part-time income or loans. EAPs of about $34,000 over four years are taxed to the student, typically at nil with tuition credits.
Frequently asked questions
How much does the government give for an RESP?
20% of annual contributions up to $2,500 — $500 a year — to a lifetime maximum of $7,200 per child (CESG), plus an extra 10–20% on the first $500 for lower-income families and the Canada Learning Bond of up to $2,000 for low-income families.
What is the RESP contribution limit?
$50,000 per beneficiary over the life of the plan, with no annual limit — but only $2,500 a year ($5,000 with carry-forward) attracts the grant.
Is RESP money taxed when withdrawn?
Contributions come out tax-free; grants and growth are paid as Educational Assistance Payments taxed as the student's income, which with tuition credits and a low income is usually little or nothing.
Can I catch up on missed RESP years?
Partly — unused grant room carries forward, but the maximum CESG in one year is $1,000 (on $5,000 of contributions), and grants end after the year the child turns 17, so starting late forfeits some of the $7,200.
What happens if my child doesn't go to university?
Contributions are returned to you, grants go back to the government, and growth can be transferred to your RRSP (up to $50,000 with room) or taken as an Accumulated Income Payment taxed at your rate plus 20%; the plan can stay open 35 years or switch to a sibling.
Does a RESP affect student loans?
RESP withdrawals count as student resources in provincial loan assessments, reducing need-based aid; grants and scholarships are not affected.
What is the additional CESG?
An extra 20% on the first $500 contributed each year (up to $100) for families with net income under about $59,000, or 10% ($50) under about $118,000, on top of the basic 20% — thresholds are indexed.
Can grandparents open an RESP?
Yes — anyone can be the subscriber; the grants depend on the primary caregiver's family income, and total contributions across all plans for the child must stay within $50,000.
Related calculators
Found an error? Report it — tell us the inputs, the result you got, what you expected and the rule or source. Confirmed corrections are published within a week.