How much should I save for college with a 529?

Enter your child’s age, college type, expected tuition inflation, investment return, and planned contributions. The calculator projects future costs and shows a savings target and monthly contribution needed to reach it.

What is a 529 college savings plan?

A 529 plan is a tax-advantaged account for qualified education expenses. Earnings grow tax-deferred and withdrawals are tax-free when used for eligible costs like tuition, fees, and room and board.

How does tuition inflation affect my savings goal?

Rising tuition increases the future cost of college. The calculator compounds today’s costs by your selected inflation rate to estimate what you’ll actually pay at enrollment.

Can scholarships and grants be included?

Yes. Add expected scholarships or grants to reduce the total funding need. The tool recalculates your remaining gap and suggested monthly savings.

Are 529 withdrawals taxed?

Qualified withdrawals for eligible education expenses are generally tax-free federally and often at the state level. Nonqualified withdrawals may incur taxes and penalties on earnings.

529 College Savings Calculator

Plan for college with detailed savings projections. Calculate future savings, estimate college costs with inflation, and determine if you're on track to meet your goals.

Child's age:

College start age:

Type of college:

Scholarships and grants (annual):

Years of college:

Cost increase:

% / yr

Savings

Current savings:

Rate of return:

Monthly contribution:

Expected return during college:

Continue contributions during college

Contributions at beginning of each month

Percent of cost covered 73%

Results

Enter values and click Calculate to see results

Methodology

We calculate the future value of your current savings and monthly contributions using monthly compound interest. College costs and scholarships are projected forward using your inflation rate, then net costs are discounted back to college start (using in-college return) for comparison to savings, ensuring timing alignment. Optional during-college contributions are included in PV calculations.

Important Disclaimers:

Calculations assume consistent monthly contributions and annual returns, which may vary in reality.
College costs are estimates based on current averages and may differ significantly by institution.
Tax benefits of 529 plans are not included in calculations. Consult a tax advisor for specific guidance.
This tool is for planning purposes only and does not constitute financial advice.

About This Calculator

1. How does this 529 College Savings Calculator work?

This calculator projects your college savings growth using monthly compound interest formulas for both initial savings and contributions. College costs and scholarships are inflated annually, then net costs are discounted to present value at college start using the in-college return rate for accurate comparison to savings. Contributions during college can be included if toggled.

2. What is a 529 plan?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Earnings grow federal tax-free and withdrawals are tax-free when used for qualified education expenses. Many states also offer tax deductions for contributions.

3. How accurate are the cost estimates?

We use current average costs for different college types and apply your chosen inflation rate. Scholarships are assumed to inflate at the same rate. Actual costs vary significantly by institution. Historical college cost inflation has averaged 3–5% annually, though this varies by institution type and location.

4. What rate of return should I expect?

529 plans typically invest in age-based portfolios that become more conservative as college approaches. Pre-college returns range from 5–10% depending on risk level. Many financial advisors suggest 7–8% for moderate growth portfolios, though past performance doesn't guarantee future results.

5. How do scholarships and grants affect my savings needs?

The calculator subtracts your estimated annual scholarship/grant amounts (inflated) from total costs to show net costs. Average merit and need-based aid varies widely; higher savings may reduce eligibility.

6. What if I'm starting late or can't save enough?

The calculator shows required monthly savings to reach your target coverage. If that's not feasible, consider lowering your target, exploring lower-cost options, encouraging part-time work, or planning to use student loans for the remainder.