529 College Savings Goal Calculator
Example: College savings goal: 120000 $ · Amount already saved: 10000 $ · Years until college starts: 15 years · Expected annual return: 6 %
| Monthly contribution needed | $328 |
| Growth of what you have now | $24,541 |
| Total you will contribute | $59,084 |
Worked example
Aim for $120,000 in 15 years with $10,000 already saved, earning 6% a year. Your existing $10,000 grows to about $24,500 on its own, leaving roughly $95,500 to fund with contributions. To hit that at 6% over 180 months, you need to save about $329 a month, contributing around $59,200 of your own money while compounding does the rest.
Frequently asked questions
What is a 529 plan?
A 529 is a state-sponsored, tax-advantaged savings account for education. Earnings grow tax-free and withdrawals are tax-free when used for qualified education expenses like tuition, fees, books, and room and board. Many states also offer a tax deduction or credit for contributions.
What return should I assume?
The right assumption follows how the money is invested. Many 529 plans offer age-based portfolios that start aggressive and grow conservative as college nears. A long horizon might justify 6 to 7%, while money needed within a few years should assume a much lower, safer return.
What if I cannot save the full amount?
You do not have to fund 100% of college from a 529. Financial aid, scholarships, work, and current income can cover part. Save what you can — even a smaller monthly amount compounds meaningfully over 15 years and reduces future borrowing.
What happens to leftover 529 money?
Unused funds can be kept for graduate school, transferred to another family member, or, within limits and rules, rolled into a Roth IRA for the beneficiary. Non-qualified withdrawals of earnings are taxed and face a penalty, so plan the target amount carefully.