College Savings Calculator
Plan for education costs. Calculate how much to save monthly for college using 529 plans, investment growth, and tuition inflation projections.
Enter Your Details
Planning for College Costs
College costs have been rising faster than general inflation — approximately 5-8% annually. A degree that costs $30,000/year today could cost $50,000-80,000/year in 10-15 years. Starting to save early is critical because compound growth can cover a significant portion of future costs.
529 College Savings Plans
529 plans offer tax-free growth and tax-free withdrawals for qualified education expenses. Many states also offer state income tax deductions for contributions. The annual gift tax exclusion allows contributions of $18,000 per beneficiary per year (2025) without gift tax implications.
How Much to Save
A common rule of thumb is to save at least one-third of projected costs, with the remainder covered by financial aid, scholarships, current income at the time, and student contributions. Starting when a child is born gives you 18 years of compound growth.
2025-2026 College Cost Benchmarks
In-state public university: $11,000-15,000/year tuition + $12,000-16,000 room and board = $23,000-31,000/year total.
Out-of-state public: $23,000-30,000 tuition + $12,000-16,000 room and board = $35,000-46,000/year total.
Private university: $40,000-65,000 tuition + $14,000-20,000 room and board = $54,000-85,000/year total.
At 5% annual tuition inflation, a degree costing $30,000/year today will cost $49,000/year in 10 years and $80,000/year in 20 years.
529 Plan Benefits
529 plans offer three major tax advantages: contributions grow tax-free, withdrawals for qualified education expenses are tax-free, and many states offer state income tax deductions for contributions. Starting in 2024, unused 529 funds can be rolled into a Roth IRA (up to $35,000 lifetime, subject to annual contribution limits), eliminating the biggest concern about overfunding.
How Much to Save
A common guideline: aim to save one-third of projected college costs. Financial aid, scholarships, and current income at the time can cover the rest. For a $200,000 total projected cost, target $66,000 in savings — achievable by saving $230/month for 18 years at 7% returns. Start early to let compound growth do the heavy lifting.
Beyond 529 Plans
Coverdell ESAs: $2,000/year limit but can be used for K-12 expenses too. UTMA/UGMA accounts: No contribution limits but taxed at the child's rate and become the child's property at 18-21. Roth IRA: Contributions (not earnings) can be withdrawn tax-free and penalty-free for education, and the account isn't counted as a student asset on FAFSA.