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Education Savings Calculator (Canadian)

Saving for your children's education requires a long-term plan. And, like saving for retirement, the earlier you start your plan the better. Use this calculator to help develop or fine-tune your education savings plan. Click the "View Report" button for a detailed look at the results.

Education Savings Calculator (Canadian) Definitions

Age of children
The current age of your children. The difference between their current age and the age they start college is the number of years you have to save. Note that there can be restrictions on the amount of grant available and participation in an RESP for children 16 or older.
Age to start education
The age your child will begin post-secondary education. The default is 18, but this can be any age up to 25.
Annual tuition
Current estimated cost of one year of tuition and books. This amount should be per child and be specific to the school and program they may be interested in attending. For the purposes of this calculator all expenses are assumed to be due at the end of the year.
Room and board
The current estimated cost of one-year room and board. Like tuition and books, this amount should be per child and specific to the school they may be interested in attending. For the purposes of this calculator, all expenses are assumed to be due at the end of the year.
Education cost inflation
This is the percentage that you expect educational costs to increase per year. Data provided by The College Board's 'Trends in College Pricing 2015' put tuition, room and board increases at approximately 4.8% per year for the last ten years.
Current amount
The total amount you currently have saved for your children's education.
Monthly contributions
The dollar amount you plan to save per month toward your children's education. All amounts are assumed to be added to your account at the beginning of the month.
Rate of return
This is the annually compounded rate of return you expect from your investments. This will also be the rate used if you end up with a negative balance and need to borrow money to meet your goal. The actual rate of return is largely dependent on the type of investments you select. For example, for the last thirty years the average annual rate of return for the TSX is about 10%. Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
Registered Education Savings Plan (RESP)
Check this box if you wish to calculate your savings with a Registered Education Savings Plan (RESP). There are two advantages to using an RESP to save for your children's education. First, the money grows tax free until the child needs it for tuition, residence and other educational expenses. Second, you receive a Canada Education Savings Grant worth as much as $600 per year per child. The grant amounts for 2016 are calculated as follows:

Registered Education Savings Plan (RESP) 2016
Income RangeAnnual Grant Calculated As
$0 - $45,282*$0.40 for each $1 for the first $500.
$0.20 for each $1 for the next $1500.
Maximum annual grant is $600
$45,282* - $90,563*$0.30 for each $1 for the first $500.
$0.20 for each $1 until you reach the maximum grant.
Maximum annual grant is $550
over $90,563*$0.20 for each $1 for the first $2500.
Maximum annual grant is $500

*These amounts are adjusted annually for inflation.

Please note that for the purposes of this calculator, taxation is not factored into the results. This calculator assumes that 1/12 of your annual RESP grant is added to your savings each month along with your normal contribution.

You are limited to a total of $50,000 in contributions to an RESP per child, but there is no annual limit. You may contribute the entire $50,000 contribution in one year if you have the means or a windfall. Lifetime grants to an RESP are limited to $7200 per child. The grant amount you receive does not reduce your contribution limit to an RESP. For additional information you can visit: Canada RESP