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.
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.
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.
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).
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 or withdrawn — scholarship amounts can be withdrawn penalty-free, though you'll owe income tax on the earnings portion.
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.