College Savings Calculator
Plan how much to save to cover college costs — see your projected balance vs. estimated tuition.
How to Use This College Savings Calculator
Enter your child's current age and the age they'll start college, along with your current savings balance and planned monthly contributions. Adjust the sliders for your expected investment return and college cost inflation rate, then enter today's annual college cost and how many years your child will attend. Click "Calculate" to see your projected savings vs. estimated total college costs.
Why This Matters
College costs have risen faster than general inflation for decades. The average annual cost at a public four-year university is now over $27,000 when you include room and board — and private schools average over $55,000 per year. A family starting to save when a child is born has 18 years of compounding growth on their side. A family starting at age 10 has only 8.
The difference is dramatic: $300/month invested at 6% for 18 years grows to roughly $100,000. The same amount invested for only 8 years reaches just $36,000. Starting early doesn't just feel better — it mathematically doubles or triples your outcome for the same monthly effort.
529 plans offer federal tax-free growth and withdrawals for qualified education expenses. Some states also offer deductions on contributions. A family in the 22% tax bracket investing $300/month in a taxable account effectively loses 22% of their growth to taxes — a 529 keeps all of it working for your child's education.
How It's Calculated
The calculator uses compound interest with monthly contributions. Your current balance grows as:
FV = P × (1 + r)^n + PMT × [((1 + r)^n − 1) / r]
Where P = starting balance, r = monthly interest rate (annual ÷ 12), n = number of months, and PMT = monthly contribution. Annual contribution increases are applied each January. The future college cost is calculated by inflating today's annual cost at the selected rate for each year the student is in college.
Tips & Common Mistakes
- Don't underestimate inflation. College costs have historically risen 4–6% per year. Using 3% can leave you significantly short.
- Start immediately, even small. $100/month started at birth beats $300/month started at age 10 in many scenarios.
- Use a 529 plan. The tax-free growth alone can add 20–30% more to your final balance depending on your bracket and investment timeline.
- Revisit annually. Recalculate each year. If you get a raise, bump your contribution by even $25/month.
- Don't forget aid. This calculator shows the gross cost. Many students receive scholarships, grants, or work-study that reduce the actual amount needed.
Frequently Asked Questions
What is a 529 plan and should I use one?
A 529 plan is a tax-advantaged savings account specifically designed for education expenses. Contributions grow federal tax-free, and withdrawals for qualified expenses (tuition, room and board, books) are also tax-free. Most states also offer a state income tax deduction. For most families, it's the best vehicle for college savings.
What annual return should I use?
The S&P 500 has averaged roughly 10% nominal annual returns historically, but a college savings portfolio usually gets more conservative as the child approaches college age. A blended 6–7% is a reasonable assumption for a moderately aggressive allocation. Use 5% or lower if you're risk-averse or close to the college start date.
What if I can't save enough to cover 100% of costs?
That's extremely common — don't be discouraged by a savings gap. Financial aid, merit scholarships, community college for the first two years, and student loans can all help bridge the gap. Even covering 50% of costs with savings dramatically reduces the loan burden your child will carry. Any savings is better than none.
Can I use this calculator for graduate school too?
Yes — simply enter the student's current age and the age they'll start grad school. Adjust the annual cost and years in college for graduate-level tuition. Keep in mind that many grad students receive fellowships or assistantships that significantly offset costs.