College Savings Calculator
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What Your Result Means
- Monthly Contribution: The amount you'd need to deposit each month so that — combined with your current savings and expected returns — you reach the total college cost target by the start date.
- Years Until College: The savings runway — more years means smaller monthly contributions thanks to compounding.
- Current Savings Growth: What your existing balance will be worth by the time college starts, compounded monthly at your expected return rate.
- Amount Still Needed: The gap between the four-year total cost and your projected savings growth. The monthly contribution is designed to fill exactly this gap.
- Investment Growth Earned: The total return your money earns above what you contributed — the power of compounding over time.
How This Calculator Works
You enter the child's current age, college start age, annual college cost, expected return rate, and current savings. The tool multiplies annual cost by four years for the total target, compounds your current savings forward monthly, subtracts that from the target to find the gap, and back-solves the future-value-of-an-annuity formula for the monthly payment that closes it. All compounding is monthly. Tuition inflation is not applied — enter an already-inflated figure if desired.
Quick Questions
Should I adjust the annual cost for future inflation?
This calculator uses the cost you enter without inflating it. If you want to plan for rising tuition, multiply today's cost by (1 + inflation rate)^years before entering it, or use the College Cost Calculator which handles inflation automatically.
What return rate should I assume?
A 529 plan invested in a diversified portfolio has historically returned 6–8% annually over long periods. Use a lower rate (4–5%) if college is less than 5 years away and you've shifted to conservative investments.
Is a 529 plan the best option?
For most families, yes — 529 plans offer tax-free growth and withdrawals for qualified education expenses. Some states also offer a state income tax deduction for contributions. Alternatives include Coverdell ESAs (lower limits) and custodial accounts (no tax advantage).
What if my child gets a scholarship?
Unused 529 funds can be rolled over to another beneficiary (sibling, yourself, etc.) or withdrawn — scholarship amounts can be withdrawn penalty-free, though you'll owe income tax on the earnings portion.
Sources
- SEC — An Introduction to 529 Plans (plan basics, tax benefits, and rules)
- College Board — Trends in College Pricing (current tuition and fee benchmarks)
- IRS — 529 Plans: Questions and Answers (tax treatment and contribution limits)
Method & review
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.