Education savings calculator
Education Savings Goal Calculator
Estimate how projected RESP savings, future contributions and selected education benefits may compare with the amount needed when each beneficiary begins post-secondary education. This is an educational projection, not a government-benefit entitlement calculation or a forecast of actual education costs.
Source context
RESP benefit reference
Education-benefit estimates are based on the data and program rules used by this calculator. Program rules, thresholds, amounts and source information can change, and the calculator may contain errors or omissions. For current program information, consult the relevant government source.
What this calculator estimates
For each beneficiary, the calculator estimates projected education savings at the education-start date, the projected cost of each study year, the value of those costs at education start, and the resulting projected funding gap or amount above the target.
The comparison is performed separately for each beneficiary. Common education assumptions may apply to everyone, but different ages, allocated balances and directed contributions can produce different results.
When a family RESP supports several beneficiaries, allocate its balance and contributions among them before calculating. The same RESP assets must not be counted in more than one beneficiary's result.
Main inputs
Enter each beneficiary's current age and the RESP savings allocated to that beneficiary. The allocated balance is treated as one opening amount; the calculator does not separate contributions, earnings or government benefits already inside it.
Enter future contribution streams and the beneficiary ages when they apply. Contributions are directed to one beneficiary and are added at year-end.
Enter one common education-start age, current annual education cost, positive whole number of study years, education-cost inflation rate and investment-return assumption.
Benefit assumptions require known history or an explicit future-eligibility scenario. Optional adjusted family income is used only for a current-rules illustration of additional CESG and QESI. It does not establish future entitlement.
How the education-start target is calculated
- Project each study-year cost from today's annual cost: Cost(k) = C × (1 + g)^(T + k), where T is the number of years until education begins and k starts at zero.
- Assume each cost is withdrawn at the beginning of its study year. Year 1 is required when education begins; Years 2, 3 and 4 are required one, two and three years later.
- Express each later cost at the education-start date: education-start value = projected cost ÷ (1 + r)^k. Year 1 therefore has a factor of 1.
- Add those education-start values to form the funding target, then compare it with that beneficiary's projected savings at education start.
- Before education, grow the opening allocated balance first, then add contributions and permitted benefit estimates at year-end. These additions receive no growth in their addition year.
The same entered return is used while savings accumulate and while valuing money left invested for later study years. The calculator retains unrounded internal precision and rounds displayed amounts.
Worked example
Suppose one beneficiary is age 10, starts post-secondary education at 18, has $20,000 of allocated RESP savings, and receives $2,500 at each projection year-end. Assume a 5% annual return, a current annual education cost of $15,000, 3% education-cost inflation, four study years, and $500 of basic CESG for each projected contribution year in which eligibility is assumed.
Projected RESP savings at age 18 are about $58,196. The projected study-year costs are about $19,002, $19,572, $20,159 and $20,764, for a nominal total of about $79,495.
At education start, those four costs are worth about $19,002, $18,640, $18,285 and $17,936 because the later amounts remain invested for one, two and three years. The education-start funding target is about $73,862, producing a projected gap of about $15,666.
This example illustrates the calculation method only. Actual education costs, investment returns and government-benefit eligibility may differ.
Assumptions and limitations
The projection assumes constant return and inflation, year-end contributions and benefits, beginning-of-study-year education costs, and the same education objective for all beneficiaries. It does not model market volatility, fees, changes in asset allocation, exact expense dates, RESP withdrawals, Educational Assistance Payments or tax.
CESG, CLB, QESI and BCTESG amounts are simplified prospective estimates. The calculator does not infer historical contribution eligibility, unused CESG room, unclaimed CLB or accumulated QESI rights from the current RESP balance, age, province or income.
Actual outcomes can differ because contributions, returns, education expenses, family income, program rules, eligibility, provider participation, tax treatment and individual circumstances can change.