529 College Savings Goal Calculator
Example: Annual college cost today: 28000 $ · Years until college starts: 15 years · Years of college to fund: 4 years · Education inflation rate: 5 % · Expected investment return: 6 %
| Total future college cost | $250,892 |
| Monthly savings needed | $863 |
| Total you contribute | $155,288 |
Worked example
Say college costs $28,000 a year today, enrollment is 15 years away, and you want to fund four years. At 5% education inflation, the first year costs about $58,200 when your child starts, and the four years together total roughly $250,700. To hit that with a 6% return over 180 months, you need to save about $860 a month. Over 15 years you would contribute about $154,800 of your own money, with investment growth covering the rest, which is the whole point of starting early.
Frequently asked questions
Why use 5% for education inflation?
Published tuition and fees have historically risen faster than the general inflation rate, often in the 4 to 6% range over long stretches. Using 5% is a reasonable planning assumption; you can lower it if you expect to target in-state public schools or community-college transfer paths.
What is a 529 plan?
A 529 is a state-sponsored, tax-advantaged college savings account. Investments grow tax-free and withdrawals for qualified education expenses are tax-free at the federal level, and many states add a deduction or credit. That tax-free growth is why the monthly figure here is lower than saving in a taxable account.
Do I need to fund 100% of college?
Not necessarily. Many families aim to cover a portion and cover the rest with income, scholarships, work-study, or student loans. Lower the years-of-college or annual-cost inputs to model a partial-funding goal that fits your budget.
What if I am starting late?
With fewer years, the required monthly amount rises sharply because there is less time for compounding. If the number is unaffordable, fund what you can, target lower-cost schools, and remember that even partial savings reduces future loan reliance.