College Savings Calculator
Calculate how much to save in a 529 plan to cover tuition and college costs.
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Frequently Asked Questions
What is a 529 plan and how does it work?
A 529 plan is a tax-advantaged savings account for education expenses. Contributions grow tax-free and withdrawals for qualified education expenses (tuition, room and board, books, computers) are tax-free federally. Many states offer a tax deduction for contributions. The SECURE 2.0 Act allows rolling unused 529 funds into a Roth IRA (up to $35,000 lifetime, subject to rules).
How much should I save in a 529 plan?
A 4-year public university currently costs $110,000-$130,000 total (in-state). A private university costs $250,000-$350,000. Starting at birth, saving $300-$500/month in a 529 with a 7% return covers most 4-year public university costs. Starting later requires significantly more monthly contributions. Even partial funding reduces student loan burden dramatically.
What if my child does not go to college?
If a 529 beneficiary does not attend college: change the beneficiary to another family member (sibling, cousin, parent — for grad school), use for trade school or vocational programs (qualified expenses), roll up to $35,000 into a Roth IRA (SECURE 2.0, requires 529 to be open 15+ years), or withdraw non-qualified funds (earnings taxed + 10% penalty, but principal returned tax-free).
What a 529 plan has to save each month, by the child's age
College costs rise about 5% a year, roughly double general inflation. A four year in-state public degree that costs about $110,000 all-in today (tuition, fees, room and board) is projected at about $265,000 for a child born this year. The table shows the monthly saving needed at a 6% return for three goals, depending on when you start.
| Goal at age 18 (today's money, before growth) | Start at birth (18 years) | Start at age 8 (10 years) | Start at age 13 (5 years) |
|---|---|---|---|
| $100,000 | $257 | $607 | $1,426 |
| $150,000 | $385 | $911 | $2,139 |
| $250,000 | $642 | $1,518 | $3,565 |
Starting at birth, about half of the $100,000 comes from growth; starting at 13, almost all of it is contributions.
Worked example
Parents of a newborn aim for $150,000 by age 18. At $385 a month and 6%, contributions total $83,160 and growth adds $66,840. If they wait until the child is 8, the same goal needs $911 a month: contributions of $109,320 and only $40,680 of growth. The ten year delay costs $26,000 in extra contributions and more than doubles the monthly figure. Any amount early beats a larger amount late, which is why grandparents' gifts at birth are so effective.
Why a 529 and not a savings account
Growth in a 529 is federal tax free when used for qualified education costs (tuition, fees, books, room and board, up to $10,000 a year of K-12 tuition, apprenticeship costs, and up to $10,000 lifetime of student loan repayment). Over 18 years on the $150,000 example, that shields about $66,840 of gains from tax, worth roughly $10,000 to $15,000 to a family in the 15% capital gains bracket. More than 30 states add a state tax deduction or credit for contributions to the home state plan. Since 2024, up to $35,000 of unused 529 money can be rolled into a Roth IRA for the beneficiary, which removes the old fear of over-saving.
Financial aid interaction
A parent-owned 529 counts as a parental asset on the FAFSA, assessed at a maximum of 5.64% a year toward the expected contribution, far gentler than money in the student's name (20%). Since the 2024-25 FAFSA, distributions from grandparent-owned 529s no longer count as student income, so a grandparent plan is now one of the most aid-friendly ways to save.
If the plan falls short
Most families do not fully fund college from savings, and that is fine. A plan that covers half the cost halves the borrowing. The remainder comes from current income during the college years, merit and need-based aid, the student's earnings, and federal student loans at the lowest rates available (the student loan calculator on this site shows the repayment side). Federal undergraduate loans cap at $5,500 to $7,500 a year, which is a reasonable ceiling to plan around.