How this calculator works
The Canada Education Savings Grant pays 20% of the first $2,500 contributed to an RESP for a beneficiary each year, up to $500 a year and $7,200 over the beneficiary's lifetime. This calculator projects contributions from the child's current age through the calendar year in which they turn 17, which is the last year contributions can earn the basic grant. Each year's contribution and grant are added at year end, after that year's investment return. The grant is limited to $500 a year and to the remaining $7,200 lifetime maximum, after any grant already received. The calculator does not model catch-up grant room (up to $1,000 in a year), the additional CESG for lower-income families, the age 16 and 17 eligibility conditions, RESP withdrawal rules, fees or taxes. It assumes the child is the sole beneficiary.
Formula
Grant for the year = min(0.20 x contribution, $500, $7,200 - grants already paid). Balance at the end of each year = previous balance x (1+r) + contribution + grant. Years = 18 - current age.
Worked example
A child aged 10 with $5,000 already in the RESP, no grant received yet, $2,500 contributed at the end of each year and a 5% annual return has 8 contribution years. Contributions total $20,000 and grants $4,000; the projected balance is $36,034.60. Starting from age 0 with $2,500 a year and no return, contributions are $45,000 and grants reach the $7,200 lifetime maximum, for a $52,200 balance.
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Frequently asked questions
What happens after the lifetime maximum?
No further grant is paid, but contributions can continue and still grow tax-deferred.
Can I catch up on missed grants?
Yes. Unused grant room can be used in later years, up to $1,000 a year. This calculator does not model that.
When does the grant stop?
Contributions made after the end of the calendar year in which the child turns 17 do not earn the basic grant. Age 16 and 17 contributions also require earlier contributions under the program rules.
Is the grant taxable?
The grant is included in the beneficiary's income when withdrawn as an educational assistance payment, but not when it is paid into the RESP.