Business Skill Forge · Calculators

529 College Savings Calculator

See the true future cost of college and the exact monthly 529 contribution that gets you there — with tax-free growth built in.

Child’s current age ?The age of the child today, in years. Used to work out how many years of saving you have left. Age college starts ?The age when your child begins college — typically 18. Annual college cost today ($) ?Tuition, fees, room and board for one year at today’s prices. 2025-26 averages: ~$29,900/yr in-state public, ~$62,990/yr private (College Board). Years in college ?How many years of college you are funding — usually 4 for a bachelor’s degree. College cost inflation (%/yr) ?College costs have historically risen faster than general inflation — roughly 5% per year over the long run. Amount already saved ($) ?Current balance in your 529 or other college savings earmarked for this child. Expected annual return (%/yr) ?The after-fee investment return you expect inside the 529. An age-based portfolio historically returns ~5-7% over the long run.

Enter your details and press Calculate to see your 529 savings plan.

How the 529 college savings calculator works

The calculator projects each future year of college separately. Every year’s cost is grown from today’s price at your college-inflation rate, so a bill 13 years away is far larger than the same bill today. It then works out the fund you need on the first day of college — the lump sum that, still earning your investment return while it is drawn down over the college years, exactly covers every tuition bill.

Future cost (year k) = Annual cost × (1 + college inflation)^k
Fund needed at start = Σ Future cost / (1 + return)^(year in college)
Monthly contribution = Gap × r / ((1 + r)^months − 1), r = return/12

Your existing savings are grown to the college start date and subtracted, leaving the funding gap. The required monthly 529 contribution is the level deposit that closes that gap by the time college begins, assuming your money keeps compounding along the way.

Why a 529 plan beats a regular savings account

A 529 is a state-sponsored, tax-advantaged account built specifically for education. Money inside it grows free of federal income tax, and withdrawals for qualified education expenses — tuition, fees, books, and room and board — are also federal-tax-free. Over 15+ years that tax-free compounding can add tens of thousands of dollars versus a taxable account, because you never lose a slice of each year’s gains to tax.

State tax breaks: Over 30 states offer a state income-tax deduction or credit for 529 contributions.
High limits: Lifetime contribution limits are typically $235,000-$575,000+ per beneficiary, depending on the state.
Flexible: Up to $10,000/year can go toward K-12 tuition, and unused funds can be moved to another family member or, within limits, rolled to a Roth IRA for the beneficiary.

Frequently asked questions

How much should I save each month in a 529? +

It depends on your child’s age, the type of school, and how much you have already saved. For a newborn targeting an in-state public university (~$30,000/year today), roughly $300-$500 per month is a common target. Enter your own numbers above for a precise figure — the earlier you start, the lower the monthly amount, because compounding does more of the work.

What return should I assume for a 529? +

Most 529 plans offer age-based portfolios that start aggressive and automatically shift to conservative as college nears. A long-run assumption of 5-7% per year after fees is reasonable. Use a lower figure if your child is close to college age, since there is less time to ride out market swings.

Does this calculator account for financial aid or scholarships? +

No — it targets the full sticker cost so you are not caught short. Any grants, scholarships, or aid your child receives simply reduce what you need to withdraw, and 529 funds not needed for one child can be reassigned to another beneficiary.

What happens to 529 money my child doesn’t use? +

You can change the beneficiary to another qualifying family member, use it for graduate school, or withdraw it (earnings are then taxed plus a 10% penalty). Since 2024, up to $35,000 of leftover funds can also be rolled into a Roth IRA for the beneficiary, subject to annual IRA limits and a 15-year account age rule.

Is college inflation really 5%? +

Historically, published college costs have risen around 5% per year over the long term — faster than general CPI inflation. Recent years have been closer to 2-4% for many public schools. The calculator lets you set your own rate; 5% is a prudent planning default.

This calculator is an educational planning tool, not financial or tax advice. Investment returns are not guaranteed and future college costs, tax rules, and 529 provisions may change. Consult a qualified financial advisor and review your specific state’s 529 plan before investing.

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