Investment Calculators · Canada
RESP growth.
Project Registered Education Savings Plan growth with full Basic and Additional CESG matching, $50,000 lifetime contribution cap, and $7,200 CESG cap.
Inputs
Future RESP value
Fill the form and press Calculate.
About the RESP
The federal government matches RESP contributions with a 20% Basic CESG, capped at $500 per year and $7,200 lifetime per child. Lower-income families can receive an Additional CESG on the first $500 of contributions each year. Contributions are not tax-deductible, but growth and grant money are taxed in the student's hands at withdrawal time, usually at a very low rate.
TNAADO Inc. · Toronto
The grant is the point
The return on an RESP is dominated by the Canada Education Savings Grant, not by market growth. Ottawa matches 20% of contributions each year, per child, up to an annual and a lifetime grant maximum. That is a guaranteed 20% on the first dollars in, which no investment reliably matches. Contributions themselves are not deductible; the growth and the grant are taxed in the student’s hands on withdrawal, usually at close to nothing.
The mistake people make. Front-loading the lifetime contribution room in year one. Grant is paid on contributions made in a year, so one large deposit collects a single year of grant and forfeits the rest. Contributing enough to collect the annual grant every year until the end of the year the child turns 17 is worth considerably more than the extra compounding gained by depositing early.
Disclaimer
Educational only. CESG thresholds are indexed annually. Verify your eligibility with the CRA and consult a qualified financial advisor.