Projected Total Cost: The estimated sticker price of all college years, inflated forward from today's annual cost at the rate you chose. This is the bill you'd face if paying full price with no financial aid.
Projected Savings: What your current savings and annual contributions will grow to by the time college starts, compounded at your expected return rate.
Funding Gap: The difference between the projected cost and your projected savings. Zero means you're on track; a positive number means you need to save more or plan for aid, loans, or scholarships.
Monthly Savings Needed: The additional monthly amount to close the funding gap, divided evenly over the months remaining. This extra amount is not compounded — actual compounding would slightly reduce the required monthly figure.
How This Calculator Works
You enter today's annual college cost, your child's current and college-start ages, an annual cost-increase rate, years in college, current savings, annual savings, and an expected investment return. The tool inflates the annual cost forward, multiplies by years of enrollment, then grows your savings at the return rate using the future-value-of-a-lump-sum and future-value-of-an-annuity formulas. The gap is divided by the months remaining for a flat monthly savings target. Financial aid and scholarships are not modeled.
Quick Questions
What annual cost-increase rate should I use?
College costs have historically risen about 5–7% per year, roughly double general inflation. A 5% assumption is conservative; 7% is more aggressive. Check the College Board's annual Trends in College Pricing report for the latest data.
What return rate is realistic for a 529 plan?
A diversified stock/bond mix in a 529 has historically returned 6–8% annually over long periods. Most advisors suggest shifting to more conservative allocations as college approaches — a blended 5–6% is a reasonable planning assumption.
Does this account for financial aid or scholarships?
No. The projected cost is the full sticker price. In practice, many families receive need-based or merit-based aid that can cut the net cost by 30–60% at private institutions. Factor in expected aid by reducing the annual cost input.
Should I use in-state or out-of-state tuition?
Use whichever scenario you're planning for. In-state public tuition averages roughly $11,000/year; out-of-state public is about $23,000; private four-year institutions average around $42,000. All figures exclude room and board.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.