College Savings Calculator
Plan how much to save for college education costs.
Planning for College: How This Calculator Works
College is the second-largest purchase most American families make, behind only a house. The numbers are daunting — private four-year schools now quote total costs of attendance above $60,000 per year — and the answer to "how much should I save?" has become genuinely complicated thanks to rising tuition, varying inflation, investment uncertainty, and financial aid dynamics.
This calculator cuts through the noise with a simple three-part projection: (1) how much your current savings plus monthly contributions will grow by the time your child enters college, (2) how much the total four-year bill will actually cost in inflation-adjusted dollars, and (3) the gap between the two. Adjust your inputs to see how contribution changes, school type, and return assumptions affect the answer.
According to the College Board's Trends in College Pricing 2025 report, published tuition and fees for 2025–26 average $11,610 for public in-state four-year schools, $30,780 for public out-of-state, and $43,350 for private nonprofit four-year schools. Our default $30,000 annual tuition is a middle-ground assumption — adjust it to match the schools you realistically expect your child to attend.
2025–26 Average College Costs (College Board)
The numbers below are published tuition and fees only — they do not include room and board, books, or personal expenses. Total cost of attendance typically adds $14,000–$18,000 per year for room and board, plus $1,200–$1,500 for books and supplies.
| School Type | Tuition & Fees | Room & Board | Total (approx.) |
|---|---|---|---|
| Public two-year (in-district) | $4,050 | $10,300 | $19,800 |
| Public four-year (in-state) | $11,610 | $13,310 | $29,900 |
| Public four-year (out-of-state) | $30,780 | $13,310 | $49,100 |
| Private nonprofit four-year | $43,350 | $14,310 | $62,990 |
The Formula
Annual Cost— today's published tuition & fees (and optionally room/board)Inflation— tuition inflation rate (default 5%, historically 4–6% annually)Years Until—College Start Age − Child's Current Age
PV— your current savings balancePMT— monthly contributionr— monthly return rate (annual rate / 12). Default 7% annual = 0.583% monthlyn— number of months until college start
Worked Example — Maya, Age 5, Aiming for a Private College
Why a 529 Plan Beats a Regular Savings Account
A 529 plan is a state-sponsored, tax-advantaged investment account specifically for education. It has three big advantages over keeping money in a brokerage or savings account:
- Tax-free growth. Investment earnings grow federally tax-free. Over 15–18 years, this eliminates the drag that taxes put on a regular brokerage account — typically worth 1–2% per year of effective return.
- Tax-free qualified withdrawals. Money used for qualified higher education expenses comes out federally tax-free. No capital gains tax on the growth.
- State tax deduction/credit. Most states offer a state income tax deduction or credit for contributions to their in-state 529 plan (values range from ~$500 to ~$20,000 per year).
What counts as a qualified 529 expense?
- Tuition and required fees at accredited colleges, universities, and vocational schools (US and many international).
- Room and board for students enrolled at least half-time (up to the school's published cost-of-attendance figure).
- Books, supplies, and required equipment — including computers, software, and internet access.
- K–12 tuition up to $10,000 per year per beneficiary (post-Tax Cuts and Jobs Act, 2018).
- Student loan repayment up to $10,000 lifetime per beneficiary (SECURE Act).
- Apprenticeship programs registered with the US Department of Labor.
- Roth IRA rollover — under SECURE 2.0, up to $35,000 of long-held 529 funds can be rolled into a Roth IRA for the beneficiary.
Most 529 plans offer an age-based (or enrollment-based) portfolio that automatically shifts from stocks to bonds as your child ages. For hands-off investors, this is the default recommendation — pick the portfolio matching your child's expected college-start year and set up automatic contributions.
College Savings Rules of Thumb
A common framework: plan to cover one-third of college costs from savings, one-third from current income during the college years, and one-third from a combination of financial aid, scholarships, and student loans. It's a rough heuristic but keeps the savings target from becoming impossible for most families.
You can borrow for college; you cannot borrow for retirement. Fully fund your 401(k) match, IRA, and retirement targets before stretching to fully fund college. Students have decades of earning ahead — you may not.
A $300/month contribution starting at birth reaches roughly $130,000 by age 18 at 7% return. The same $300/month starting at age 10 reaches only about $37,000. Time in the market is more valuable than the dollar amount you save.
How to Use This Calculator
- Enter your child's current age and the age they'll start college (usually 18).
- Enter your current college savings balance — your 529, education-specific UGMA/UTMA, or earmarked brokerage account.
- Set your monthly contribution. Even $100/month started at birth grows into real money by age 18.
- Pick an expected return. 7% annual is a reasonable long-term assumption for a diversified stock/bond portfolio; use 5% for a more conservative estimate.
- Set tuition inflation. 5% is our default (in line with long-run College Board data); use 3–4% for a more optimistic view.
- Enter today's annual tuition for the school type you're targeting (use the cost table above for reference) and the number of college years (typically 4).
- Read the result panel — projected savings, projected cost, and the funding gap. Adjust contributions until the gap closes.
Methodology & Assumptions
- Monthly compounding:
balance = balance × (1 + annualReturn/12) + contribution. - Inflation compounds annually; each college year is multiplied by
(1 + inflation)^(years + year index). - Default return of 7% assumes a diversified stock/bond portfolio over 10+ years; historical S&P 500 real returns average ~7% long-term.
- Default tuition inflation of 5% reflects long-run College Board averages; recent years have trended slightly lower.
- No tax drag on 529 growth (tax-free for qualified use); if you use a taxable account, reduce effective return by 0.5–1.5%.
- Does not model financial aid, scholarships, or state tax deductions — these effectively reduce your out-of-pocket target.
Glossary
- 529 plan
- A tax-advantaged investment account for education expenses, sponsored by US states. Earnings grow tax-free and withdrawals for qualified expenses are tax-free.
- Qualified higher education expense
- Tuition, required fees, books, supplies, required equipment (including computers), and room/board for at-least-half-time students.
- Tuition inflation
- The annual percentage change in college tuition. Historically 4–6%, often higher than general CPI inflation.
- Sticker price
- The full published tuition and fees before any financial aid, grants, or scholarships — the worst-case family cost.
- Net price
- The actual out-of-pocket cost after grants, scholarships, and institutional aid. Often 40–60% lower than sticker at private schools.
- FAFSA
- Free Application for Federal Student Aid. The form used to determine eligibility for federal grants, loans, and many state and institutional aid programs.
- EFC / SAI
- Expected Family Contribution (pre-2024) / Student Aid Index (2024 onward). The number FAFSA calculates as your family's expected share of college costs.
- SECURE 2.0 Roth rollover
- Law (effective 2024) allowing up to $35,000 of long-held 529 balances to be rolled into a Roth IRA for the beneficiary, subject to annual Roth limits and a 15-year account age rule.
- Age-based portfolio
- A 529 investment option that automatically shifts from stocks to bonds as the child approaches college age. The default pick for most families.
- UGMA / UTMA
- Uniform Gifts to Minors Act / Uniform Transfers to Minors Act — custodial accounts that transfer to the beneficiary at age of majority. Less tax-advantaged than a 529 and more harmful to financial aid.
Frequently Asked Questions
Depends on school type and years to save. 2025–26 averages: public in-state tuition ~$11,610, public out-of-state ~$30,780, private nonprofit ~$43,350 (College Board). At 5% tuition inflation and 7% returns, a newborn needs ~$300–$500/month to fully fund private-school tuition.
A state-sponsored, tax-advantaged investment account for education. Contributions use after-tax dollars, but earnings grow tax-free and qualified withdrawals are tax-free. Most states offer an income tax deduction or credit for contributions to the in-state plan.
Tuition, required fees, books, supplies, required equipment (including computers), and room/board for half-time+ students. Up to $10K/year for K–12 tuition; up to $10K lifetime for student loans; rollovers to Roth IRA under SECURE 2.0 rules.
Long-run average 4–6% annually, historically higher than general CPI. Recent years have been closer to 2–4%. Default 5% is a conservative middle estimate. Check College Board's annual report for current data.
For a 10+ year horizon, yes — by a wide margin. 529s grow tax-free and are invested in equities that historically return 6–8% vs 4–5% in HYSAs. Over 15 years, a 529 typically ends with 50–80% more than a taxable savings account after tax drag.
Yes, but modestly. Parent-owned 529 counts as parental asset on FAFSA — up to 5.64% reduction in aid. New FAFSA rules (2024–25+) stopped penalizing grandparent-owned 529 distributions as student income. Net positive for most families.
Published tuition & fees average $43,350 (College Board 2025). With room/board ($14,310), books, and personal expenses, total cost of attendance typically $58,000–$65,000/year. Over 4 years at 5% inflation, a newborn's projection can exceed $350,000.
Three options: (1) change beneficiary to another family member, (2) withdraw with 10% penalty on earnings + ordinary income tax, (3) under SECURE 2.0, roll up to $35,000 of long-held 529 funds into a Roth IRA for the beneficiary.
529 for the bulk (higher limits, state deductions, dedicated). Roth for flexibility (contributions withdrawable anytime, earnings penalty-free for qualified education). Many families use both: 529 for planned costs, Roth for retirement with education as a fallback.
Start with your state's plan if it offers a tax deduction. If not, shop nationally — Utah's my529, New York's NY 529, and Nevada's Vanguard plan are consistently top-rated for low fees. Open online in ~15 minutes with your SSN, link a bank, pick an age-based portfolio, set up automatic contributions.