RESP Withdrawal Calculator Canada

Taking money out of an RESP is a different skill from putting it in. Contributions come out tax-free, but grants and growth come out as Educational Assistance Payments taxed in the student’s hands. This calculator splits an RESP balance into those two parts and spreads them evenly over the school years you choose.

Total RESP balance when school starts ($)Total contributions you made over the years ($)Years of school to fund

In the first 13 weeks of a program, EAP withdrawals are limited ($8,000 for full-time and $4,000 for part-time studies under current rules); after that there is no annual EAP ceiling. The subscriber chooses the mix of EAP and contribution withdrawals on each payment.

How it works

Every RESP holds two kinds of money. Post-Secondary Education payments (PSE) are your own contributions returning to you or the student, and they are never taxed. Educational Assistance Payments (EAP) are everything else, meaning government grants plus all investment growth, and they are taxed as the student’s income in the year received.

Many families withdraw EAP first, especially in the student’s low-income early years, because unused grant money is what gets repaid to the government if the plan is later collapsed. Spreading EAP evenly, as this calculator does, keeps each year’s student income low and predictable.

Worked example

The calculator’s own output for a $60,000 RESP built from $36,000 of contributions, spread over 4 school years:

Item	Amount
RESP balance	$60,000.00
Contributions made	$36,000.00
Grants + growth (EAP portion)	$24,000.00
EAP per year over 4 years	$6,000.00
Tax-free contributions per year	$9,000.00
Total per school year	$15,000.00

Frequently asked questions

How much EAP can be withdrawn in first year?

During the first 13 consecutive weeks of a qualifying program, EAP is capped at $8,000 for full-time and $4,000 for part-time studies. After 13 weeks there is no set maximum, though the provider must be satisfied the expenses are reasonable.

Who is taxed on EAP, the parent or the student?

The student. EAP is reported on a T4A in the beneficiary’s name and added to their income. With the basic personal amount and tuition credits, many students pay no tax on a typical year’s EAP.

What happens to leftover RESP money after graduation?

The plan can stay open for years (up to the 35th year), be transferred to a sibling in a family plan, or be collapsed: contributions return tax-free, grants are repaid, and accumulated income can go to the subscriber’s RRSP (up to $50,000) or be taxed plus a 20% penalty.

Can RESP money pay for rent and living costs?

Yes. Once a student is enrolled in a qualifying program, RESP withdrawals can fund reasonable education-related costs including tuition, books, housing, food and transport; keep receipts in case the provider or CRA asks.

Do RESP withdrawals affect student aid or loans?

EAP counts as student income, which can affect some need-based aid calculations in later years and the student’s own tax credits. It does not reduce the parent’s tax credits.

More free calculators

For education only. This calculator gives estimates, not financial, tax or legal advice. Figures use 2026 rates where a rate is built in; confirm your own numbers before making a decision.