529 College Savings Calculator

Plan your college savings with a 529 plan. Project future tuition costs with inflation, calculate your savings gap, and determine how much to contribute monthly.

College Savings Plan

yrs
yrs
$
$
%

Tuition Costs

$

Including room & board

%

Historically 5-6%

yrs

Ready to Calculate

Enter your child's age and savings details to project college costs and plan your 529 contributions.

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Pro Tip

Start saving early - even small contributions benefit enormously from compound growth over 18 years. A $200/month contribution starting at birth can grow to over $85,000 by college age at 7% returns.

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Planning for College Costs

College costs have been rising faster than general inflation for decades, making early planning essential. Tuition inflation has averaged 5-6% annually, meaning costs roughly double every 12-14 years. A family with a newborn today could face tuition costs 2-3 times current levels by the time their child enrolls.

529 plans are the most popular college savings vehicle due to their tax advantages. Contributions grow tax-free federally, and qualified withdrawals pay no federal tax. Many states offer additional tax deductions or credits for contributions, further enhancing the benefit.

The power of starting early cannot be overstated. Thanks to compound growth, contributions made in the first few years of a child's life have the most time to grow and contribute the most to the final balance. A dollar contributed at birth is worth significantly more than a dollar contributed at age 15.

Do not let the total projected cost discourage you. Saving even a portion of the expected cost is valuable - financial aid, scholarships, and student contributions can cover the rest. Having $50,000 saved is far better than having nothing, even if total costs are $200,000.

College Savings Formulas

Projected Tuition & Savings Growth

Future Tuition = Current Tuition × (1 + inflation)years
Savings FV = PV(1+r)n + PMT × [(1+r)n - 1] / r

Where:

Current Tuition = Today's annual tuition cost

inflation = Annual tuition inflation rate (typically 5-6%)

PV = Current savings balance

PMT = Monthly contribution

r = Monthly investment return rate

Example

Age 5 child, $25K annual tuition, 5% inflation, $15K saved, $500/mo at 7%:

  • • Years until college: 13
  • • Year 1 tuition at 18: $25,000 x (1.05)^13 = $47,405
  • • 4-year total: ~$200,000 (with continued inflation)
  • • Projected savings: ~$148,000
  • • Shortfall: ~$52,000
  • • Required monthly: ~$675 to fully fund

Frequently Asked Questions

What is a 529 plan?
A 529 plan is a tax-advantaged savings plan designed for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses (tuition, room and board, books, supplies) are not taxed at the federal level. Many states also offer tax deductions for contributions.
What can 529 funds be used for?
Qualified expenses include tuition, fees, room and board, books, supplies, computers, and internet access at eligible educational institutions. Since 2018, up to $10,000/year can be used for K-12 tuition. Unused funds can also be rolled into a Roth IRA (with limitations) as of 2024.
What happens if my child does not go to college?
You have several options: change the beneficiary to another family member, use funds for vocational school or other qualified education, roll up to $35,000 into a Roth IRA (subject to contribution limits and account age requirements), or withdraw the money (earnings will be taxed and subject to a 10% penalty).
How much should I save for college?
The amount depends on whether you plan to cover the full cost or a portion. Average annual costs in 2024: public in-state ~$23,000, public out-of-state ~$41,000, private ~$54,000 (including room and board). These costs increase 3-6% annually.
What rate of return should I assume?
A 6-8% return is a reasonable long-term assumption for a diversified 529 portfolio. Most plans offer age-based portfolios that start aggressive and become more conservative as college approaches, which may average 5-7% over the full savings period.