The purpose of this calculator is to enable you to determine if you have sufficient savings for your children's education. By selecting various options, you can calculate current savings, regular contributions, and the future value of an investment. Simply enter values in all fields except the one you wish to calculate and the system will compute the answer.
The lifetime maximum contribution to a Registered Education Savings Plan (RESP) is $50,000 per beneficiary. The contributions you make to an RESP are not tax-deductible, but tax on the income earned on investments within the Plan is deferred until the intended beneficiary withdraws the funds. In most cases, the beneficiary will be in a lower tax bracket at the time withdrawals are made. Contributions for any beneficiary on the plan may be made until they turn 31 years of age. In addition, RESP accounts are eligible to receive the Canada Education Savings Grant from the Federal Government which is equal to 20% of the first $2,500 in annual RESP contributions per beneficiary. That's up to $500 per beneficiary each year to a lifetime limit of $7,200.
Try the Education Calculator to compute how much you would have to save to have an anticipated amount available when your child is ready for university or college. Input the estimated annual rate of return, the number of years to be invested, and a predicted rate of inflation (or 0% if you prefer not to adjust for inflation). The calculator will compute the contributions that you would need to make to achieve your goal.
- For every item in the table, either type a value into the left-hand box, or highlight and click on a value from the drop-down list on the right. Numbers selected from the drop-down list will appear in the right-hand box.
- Ensure that a value has been entered for every item in the table, except for the one you wish to calculate, even if it is only zero.
- Select "Solve" from the drop-down list for the remaining field that you wish to calculate.
- Click on "Calculate".