savingsOnlineCalc
search

College Cost Calculator

Project the total cost of college with inflation and see how much you need to save

5 yrs
017
18 yrs
$
5%
1%10%

Savings Plan

$
$
7%
0%12%

Planning Ahead for College Costs

Starting early is the single biggest advantage in college savings. The power of compounding means money saved when a child is young grows substantially by college age.

menu_book

Guide

How it works

College costs have historically risen at 5–6% per year - significantly faster than general inflation. This means a school that costs $50,000/year today will cost over $81,000/year in 10 years at 5% inflation.

This calculator projects total cost using compound inflation, then shows how your current savings and monthly contributions (growing at your expected investment return) compare to the projected need.

A 529 plan is the most tax-efficient way to save for college - contributions grow tax-free and withdrawals for qualified education expenses are federal tax-free.

What is a 529 plan and should I use one?expand_more

A 529 is a tax-advantaged savings plan designed for education expenses. Your contributions grow tax-free and qualified withdrawals (tuition, room & board, books) are federal tax-free. Most states offer an additional state income tax deduction for contributions. This makes 529 plans the most efficient vehicle for college savings for most families.

How much should I save monthly for college?expand_more

A common rule of thumb is to save 1/3 through savings (529 contributions), expect 1/3 from future income (scholarships, part-time work, parent income at time of college), and finance 1/3 through student loans. This calculator can help you determine the savings piece based on your specific situation.

What if my child doesn't go to college?expand_more

529 funds can be transferred to another family member without penalty, used for vocational schools, used for K-12 tuition (up to $10,000/year), or withdrawn for non-education purposes (subject to taxes and a 10% penalty on earnings). The SECURE 2.0 Act also allows rolling unused 529 funds into a Roth IRA for the beneficiary (subject to limits and rules).

Should I include financial aid in this estimate?expand_more

This calculator shows the gross cost before financial aid, scholarships, or grants. Financial aid depends heavily on your family's income, assets, and the specific school. Use this figure as a conservative upper bound - many students receive significant aid that can reduce the actual out-of-pocket cost substantially.