College Savings Calculator
College is a race between two forces: your savings compounding, and tuition inflating. Enter your numbers to see if your 529 is winning — and exactly what monthly savings covers the projected bill.
Your inputs
Savings growth vs. projected cost
What moves the needle most?
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Two races, one finish line
Saving for college is really two races running at once. In one lane, your money compounds: every dollar you invest today earns returns, and those returns earn their own returns. In the other lane, tuition inflates — historically around 3 to 5% a year, roughly double general inflation. Your savings plan wins only if compounding outruns tuition inflation, which is why starting early matters more than investing brilliantly.
The math
With monthly compounding, your savings at college age are:
where n = months until age 18.
Each college year's cost = today's cost × (1 + inflation)years until that year
Worked example
Start with $5,000, save $500/month for a 3-year-old (15 years of growth) at 7%: your fund reaches about $172,700. Meanwhile $30,000 of today's annual cost, inflating at 5%, becomes roughly $268,800 for four years. That's a $96,000 shortfall — and the fix is concrete: about $803/month from today fully funds it. Notice how the gap feels large but the monthly fix is specific and actionable; that's the point of the calculator.
What about 529 plans?
A 529 is the account most families use for this job: investments grow tax-free and withdrawals are tax-free for qualified education expenses (tuition, room, board, books). Many states add a tax deduction for contributions, and contribution limits are high — often $300,000+ per beneficiary. If the child doesn't need it all, you can change the beneficiary to a sibling, or roll up to $35,000 lifetime into the beneficiary's Roth IRA under SECURE 2.0 (account open 15+ years).
Caveats worth knowing
- Returns aren't smooth. The model assumes a constant 7%; real markets crash and surge. A bad stretch right before college hurts — many families shift to conservative investments in the final years.
- Costs vary wildly. $30,000/year is a middle estimate; public in-state can be half that, private can be triple. Adjust the cost input to your target school type.
- This ignores fees and taxes. Fund expense ratios shave returns; the model assumes a tax-advantaged account like a 529.
- Financial aid exists. Grants, scholarships, and aid change the real bill. A parent-owned 529 counts lightly against aid (assessed up to 5.64% as a parental asset).
Background reading: U.S. SEC investor.gov on saving for kids' education; College Board Trends in College Pricing for tuition inflation data.