RESP Value Comparison Tool

RESP vs non-RESP comparison +$11,900

Estimated RESP advantage after grants, tax-sheltered growth, and student-tax treatment.

Savings plan Annual contribution

Years until first withdrawal Expected annual return

Grants and benefits Include basic CESG Unused CESG room may be available Additional CESG band CLB, provincial, or other benefits over the period

Tax comparison Tax rate on annual growth outside RESP

Student tax rate on EAPs

Estimated tax-shelter effect +$3,600

Compares RESP growth on contributions with annual tax drag outside the RESP.

What the model includes

Personal contributions $30,000

Within the $50,000 lifetime contribution limit.

Grant and benefit deposits $6,000

Basic CESG estimate included.

Projected RESP value $50,200

After estimated student tax on EAP amounts.

Projected value without RESP $38,300

Uses the same annual contribution with simplified tax drag on growth.

Estimated EAP tax $0

Grants and earnings are modelled as taxable to the student when withdrawn for school.

Estimated RESP advantage +$11,900

Actual results depend on rules, provider support, investment returns, and withdrawal timing.

RESP constraints to keep visible

No deduction

Contributions are not deductible on the subscriber's income tax return.

$50,000 lifetime limit

Personal contributions are tracked per beneficiary across all RESPs.

Education-use rules

Grants and earnings usually need eligible post-secondary study to be paid as EAPs.

Repayment risk

Some withdrawals, transfers, beneficiary changes, or closures can require grant repayment.

Provider rules

Fees, investment choices, transfer steps, and provincial grant support vary by promoter.

Investment risk

Returns are not guaranteed, and account value can fall before school starts.

Input Use real family numbers

Replace defaults with the child's age, contribution history, province, school timing, or provider details where the tool asks for them.

Output Compare the next decision

Use the result to decide what to ask the promoter, not as proof of eligibility or investment outcome.

Constraint Confirm before acting

RESP grants, withdrawals, transfers, fees, and school eligibility can depend on provider support and current government rules.

Assumptions and constraints

Review before using the result 0/5 checked

01 RESP contributions are not tax-deductible. 02 The non-RESP comparison uses a simplified annual tax drag on investment growth. 03 RESP grants, earnings, and provincial benefits may be taxable to the student when paid as educational assistance payments. 04 Grant eligibility, contribution history, beneficiary age, residency, provider support, school attendance, and investment returns can change the outcome. 05 This tool is educational only and is not financial, tax, legal, or investment advice.

Official sources

How a Registered Education Savings Plan works Canada Revenue Agency · checked 2026-05-24 RESP contributions Canada Revenue Agency · checked 2026-05-24 Canada Education Savings Grant Canada Revenue Agency · checked 2026-05-24 Canada Learning Bond Canada Revenue Agency · checked 2026-05-24 How much money benefits could add to the RESP Canada.ca · checked 2026-05-24 Pay for education using the RESP Canada.ca · checked 2026-05-24 RESP payments, transfers, and rollovers Canada Revenue Agency · checked 2026-05-24 Managing an RESP Canada.ca · checked 2026-05-24