Settings
6-8% is typical for a balanced portfolio
Then $2,500/yr for CESG
Your realistic yearly amount
4 Strategies Compared
Steady $2,500/Year
Contribute $2,500 every year for 18 years. Maximizes the full $7,200 CESG over the child's lifetime.
Front-Loaded + CESG Max
Large lump sum in year 1, then $2,500/year to keep collecting the $500 CESG each year. Best balance of compound growth and free government money.
$50,000 Lump Sum (Year 1)
Deposit the full $50,000 lifetime max immediately. Maximizes compound growth but only gets $500 CESG in year 1 — you miss $6,700 in free government grants.
Custom Amount
Set your own annual contribution to see what you can realistically achieve.
Growth Over 18 Years
How each strategy compounds over your child's lifetime
Where the Money Comes From
Your contributions vs. free government money vs. investment growth
Year-by-Year: Front-Loaded Strategy
Deposit $16,500 in year 1, then $2,500/year to maximize CESG
| Year | Deposit | CESG | Total Contributed | Balance |
|---|---|---|---|---|
| Birth Year | $16,500 | $500 | $16,500 | $18,190 |
| Year 1 | $2,500 | $500 | $19,000 | $22,673 |
| Year 2 | $2,500 | $500 | $21,500 | $27,470 |
| Year 3 | $2,500 | $500 | $24,000 | $32,603 |
| Year 4 | $2,500 | $500 | $26,500 | $38,096 |
| Year 5 | $2,500 | $500 | $29,000 | $43,972 |
| Year 6 | $2,500 | $500 | $31,500 | $50,260 |
| Year 7 | $2,500 | $500 | $34,000 | $56,989 |
| Year 8 | $2,500 | $500 | $36,500 | $64,188 |
| Year 9 | $2,500 | $500 | $39,000 | $71,891 |
| Year 10 | $2,500 | $500 | $41,500 | $80,133 |
| Year 11 | $2,500 | $500 | $44,000 | $88,953 |
| Year 12 | $2,500 | $500 | $46,500 | $98,389 |
| Year 13 | $2,500 | $500 | $49,000 | $108,487 |
| Year 14 | $1,000 | $200 | $50,000 | $117,365 |
| Year 15 | — | — | $50,000 | $125,580 |
| Year 16 | — | — | $50,000 | $134,371 |
| Year 17 | — | — | $50,000 | $143,777 |
| Total | $50,000 | $7,200 | — | $143,777 |
Individual vs. Family RESP
Choose the right plan type before you open an account
Individual RESP
- • One beneficiary (one child)
- • Anyone can be named — doesn't need to be your child
- • Simpler to manage
- • If the child doesn't go to school, funds can't be redirected to a sibling
- Best for: only children, or grandparents contributing for a specific grandchild
Family RESP
Recommended- • Multiple beneficiaries (must be related by blood or adoption)
- • If one child skips school, funds redirect to a sibling automatically
- • Same $50,000 lifetime limit per child, same $7,200 CESG per child
- • More flexible — covers you if plans change
- Best for: families with 2+ children (or planning to have more)
What If Your Child Doesn't Go to School?
Don't let this fear stop you from opening an RESP — here's exactly what happens to each portion
Tax-free, no penalty. This is your money — you always get it back.
The grants go back to the government. You don't lose anything — you just don't keep the free money.
Same as CESG — returned, but you never contributed anything for it anyway.
Option A: Roll up to $50,000 into your RRSP (if you have room) — no penalty. Option B: Withdraw and pay your marginal tax rate + 20% penalty tax.
Other options: Wait up to 36 years for the child to decide (the RESP stays open). Transfer to another child in a Family RESP. Name a new beneficiary. Remember: "post-secondary" includes college, trade school, apprenticeships, and certificate programs — not just university.
The CESG Is Free Money
The government gives you 20% on the first $2,500 you contribute each year — that's $500/year, up to $7,200 lifetime. Don't leave it on the table.
Time Beats Timing
A lump sum in year 1 produces the most compound growth, but you miss $6,700 in CESG grants. The front-loaded strategy balances both — big deposit early + $2,500/year for CESG.
Withdrawals Are Smart Too
When your child withdraws, the CESG + growth portion (EAP) is taxed in their hands — and since most students earn little, they pay almost no tax on it.
This calculator uses simplified assumptions. Actual returns vary. CESG rules, contribution room carry-forward, and Additional CESG for lower-income families are not fully modeled. Consult a financial advisor for personalized RESP advice. Rates as of 2026.