RESP Government Grant Calculator
Calculate the 'free money' the government adds to your child's 2026 education savings plan.
Last updated: April 2026
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
- 1Annual Contribution — Enter how much you plan to save per year per child.
- 2Check Catch-up — If you missed previous years, you can get a double grant ($1,000) by contributing more this year.
- 3Income Eligibility — Families with lower incomes might qualify for the CLB, which requires no matching contributions.
Formula & example
CESG = Min(Contribution, Annual Room) × 20%
If you contribute $2,500, the government deposits an extra $500. Your account starts with $3,000 before any investment growth occurs.
Benefits
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When withdrawn, the growth and grants are taxed in the student's hands, who usually pays $0 in tax.
Use cases
Newborn Savings
Start early to take full advantage of the $7,200 lifetime grant space.
Catching Up
If you started an account late, use the carry-forward rules to get double grants for missed years.
Frequently asked questions
What if the child doesn't go to school?+
You must return the grants to the government, but you can take back your original contributions tax-free, or roll the growth into your RRSP.
Is there a monthly limit?+
No. You can contribute in a lump sum or monthly. The government calculates the grant based on annual totals.