College Savings Calculator (529 Plan)
Project college savings growth with tuition inflation. Models 529 plans and shows monthly contribution needed to fund a 4-year degree.
What this calculates
College costs in the US grow ~5 % yearly — well above general inflation. This calculator projects future tuition cost and figures the monthly savings needed to cover it, including investment growth in a 529 plan. The earlier you start, the dramatically less you need to save monthly.
Formula & how it works
Future cost = today_cost × (1 + tuition_inflation)^years_until. Monthly required = future_cost / (((1 + r/12)^(12y) − 1) / (r/12)), where r is investment return. 529 plans grow tax-free for qualified education expenses; most states offer additional state tax deductions on contributions.
Worked example
Newborn, want to fund 4-year public state college (current cost $30K/year × 4 = $120K). 18 years out at 5 % inflation: future cost ≈ $289K. At 7 % investment return, monthly contribution needed: ~$640. Wait 8 years (newborn → age 8, 10 years to go) and same target: ~$1,750/month — almost 3× more.
Frequently asked questions
What's a 529 plan?
Tax-advantaged savings account for education. Contributions grow tax-free; withdrawals for qualified expenses (tuition, room/board, books, computers) are tax-free. State tax deduction often available.
What if my child doesn't go to college?
Use for trade school, apprenticeships, K-12 (up to $10K/year), or transfer to another beneficiary (sibling, cousin, even yourself). New: up to $35K can roll to Roth IRA after 15 years with conditions.
Public vs private cost gap?
Public in-state: $25-35K/year all-in. Public out-of-state: $40-55K. Private: $65-85K. Elite private: $90K+. Most students get aid that reduces actual cost 30-50 %.
Pay for college or save for retirement first?
Retirement, almost always. You can borrow for college; you can't borrow for retirement. Max your 401k match first, then split between retirement and 529.
Disclaimer: Informational only. State 529 plan rules vary. Talk to a financial advisor.
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