RESP education savings calculatorThe basics
Tax-free growth: The money you contribute into an RESP (Registered Education Savings Plan) grows tax-free until withdrawn.
Contribution limit: There are no annual limits, but there is a contribution maximum of $50,000 per beneficiary for the duration of the RESP.
Canada Education Savings Grant maximum: Each beneficiary can get a lifetime maximum of CESG payments of $7,200.
Household income and CESG payments
Regardless of family income, HRSDC pays a basic CESG of 20% of annual contributions made to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year). There is a lifetime limit of $7,200 per beneficiary.
HRSDC may also pay an additional CESG amount for each qualifying beneficiary depending on the family's net income.
For 2010, the CESG rate on the first $500 contributed to an RESP for a beneficiary who is a child under 18 years of age is:
• 40% (extra 20% on the first $500), if the child’s family has qualifying net income for the year of $40,970 or less; or
• 30% (extra 10% on the first $500), if the child’s family has qualifying net income for the year that is more than $40,970 but is less than $81,941.
For more information, download the Canada Revenue Service RESP fact sheet.
* Calculate with the default contribution amount set at zero("0")for a contribution strategy that gives you both the benefit of compounding and the maximum allowable CESG payments over the life of the RESP. See Notes, assumptions and savings strategies for more information.