RESP Government Grant Calculator
Calculate the 'free money' the government adds to your child's 2026 education savings plan.
What is an RESP?
A Registered Education Savings Plan (RESP) is a contract between an individual (the subscriber) and the government to save for a child's (the beneficiary) post-secondary education.
The biggest draw of the RESP is the **Canada Education Savings Grant (CESG)**. Essentially, the government gives you a 20% return on your investment immediately, regardless of how the markets perform.
How to Use This Calculator
- Annual Contribution - Enter how much you plan to save per year per child.
- Check Catch-up - If you missed previous years, you can get a double grant ($1,000) by contributing more this year.
- Income Eligibility - Families with lower incomes might qualify for the CLB, which requires no matching contributions.
Calculation Formula & Example
The Formula
CESG = Min(Contribution, Annual Room) × 20%
Where:
- Annual Room = Standard $2,500 or $5,000 if catching up.
- Lifetime Grant Max = $7,200 per child.
Example Calculation
If you contribute $2,500, the government deposits an extra $500. Your account starts with $3,000 before any investment growth occurs.
Benefits of Using This Calculator
- Instant 20% Return - You cannot find a safer, guaranteed 20% return anywhere else.
- Tax-Free Growth - Money inside the RESP grows without being taxed.
- Lower Tax on Withdrawal - When withdrawn, the growth and grants are taxed in the student's hands, who usually pays $0 in tax.
Calculator Use Cases
Start early to take full advantage of the $7,200 lifetime grant space.
If you started an account late, use the carry-forward rules to get double grants for missed years.
Frequently Asked Questions
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