RESP Withdrawal Calculator — Plan Your Child Education Funding — Canada 2026
Calculate RESP withdrawals including Educational Assistance Payments and refund of contributions. Understand tax implications for your student.
RESP withdrawals have two components: the refund of your contributions (non-taxable) and Educational Assistance Payments (EAP) consisting of government grants and investment growth (taxable in the student hands). Since students typically have low income the tax on EAP is minimal or zero. Maximum EAP is $8000 for full-time students in the first 13 weeks then $5000 per subsequent 13-week period.
How much RESP can I withdraw for my child?
For a full-time student you can withdraw unlimited contribution refunds (tax-free) plus up to $8000 EAP in the first 13 weeks. After that $5000 EAP per 13-week period. For a $50000 RESP (say $30000 contributions + $20000 growth/grants): the $30000 is tax-free and $20000 EAP is taxable in the student name (likely $0 tax if only income).
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RESP Calculator Canada
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| EAP First 13 Weeks | $8000 maximum |
| EAP Per 13-Week Period | $5000 maximum |
| Contribution Refund | Tax-free (your original money) |
| CESG Received | 20% match up to $500/year |
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Use Calculator NowFrequently Asked Questions
How much RESP can I withdraw for my child?
For a full-time student you can withdraw unlimited contribution refunds (tax-free) plus up to $8000 EAP in the first 13 weeks. After that $5000 EAP per 13-week period. For a $50000 RESP (say $30000 contributions + $20000 growth/grants): the $30000 is tax-free and $20000 EAP is taxable in the student name (likely $0 tax if only income).
What happens to unused RESP?
If your child does not pursue post-secondary education: wait up to 35 years from opening (child may change mind). Transfer to another child beneficiary (no penalty). Transfer growth to your RRSP (up to $50000 if you have room). Withdraw growth as Accumulated Income Payment (taxed at marginal rate + 20% penalty). Government grants must be returned to the government.
Is RESP worth it?
Absolutely. The 20% CESG match alone makes RESP unbeatable. Contributing $2500/year gets $500 free from the government. Over 18 years: $45000 contributed + $7200 CESG + investment growth = approximately $80000-100000 for your child education. No other investment gives an immediate guaranteed 20% return.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Should I invest regularly or as a lump sum?
Regular investing (dollar-cost averaging) smooths out market volatility by buying at various price points. Lump sum investing works better if markets are undervalued. For most people, regular monthly investing is simpler and more disciplined.
How much should I invest monthly to reach my goal?
The amount depends on your target, timeline, and expected returns. Use this calculator to model different scenarios. The key factors are starting early, investing consistently, and reinvesting returns.
Are investment returns taxable?
Tax treatment varies by investment type and country. Capital gains, dividends, and interest income may be taxed differently. Consult a tax professional for advice specific to your situation and jurisdiction.
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Last updated: March 2026