529 plan calculator
Project four years of college costs, compare them with your savings and estimate the monthly contribution needed under your assumptions.
For a 5-year-old, four college years starting at 18 project to $243,822, assuming $30,000 annual costs today and 5% education inflation. Starting with $20,000 and adding $400 monthly covers about 59% under a constant 6% return.
Tuition, fees, room and board
College costs have outpaced general prices
Of a projected $243,822 four-year bill, starting in 13 years.
Balance when the first bill arrives
Across all four years
Instead of what you save now
Each inflated to the year it arrives
| Year | Cost | Covered | Short |
|---|---|---|---|
| Year 1 (age 18) | $56,569 | $56,569 | - |
| Year 2 (age 19) | $59,398 | $59,398 | - |
| Year 3 (age 20) | $62,368 | $28,223 | $34,145 |
| Year 4 (age 21) | $65,486 | $0 | $65,486 |
Contributions are gifts for tax purposes. Up to $19,000 per child per year is free of gift tax, and a five-year election lets one contributor front-load up to $95,000 at once.
Illustration, not a return forecast. Costs and savings are in future dollars. Assumes four college years from age 18, constant returns and annual withdrawals. Excludes aid, scholarships, state tax benefits and tax on nonqualified withdrawals. Investments can lose value, including during college.
What it takes to fully fund, by the age you start
| Starting at | Years to college | Projected four-year cost | Monthly to fully fund |
|---|---|---|---|
| Newborn | 18 | $311,185 | $735/mo |
| Age 5 | 13 | $243,822 | $948/mo |
| Age 10 | 8 | $191,041 | $1,423/mo |
| Age 14 | 4 | $157,170 | $2,658/mo |
Assumes nothing saved yet, $30,000 a year in today's costs, 5% education inflation, a 6% return, and four years starting at 18. A later start leaves fewer years to contribute before college begins.
Choose a cost target you can explain
Start with the cost you expect your savings to cover, including tuition, housing, and other eligible expenses. If you expect aid, adjust your cost target: the calculator does not estimate it. The $30,000 example and 5% inflation rate are assumptions, not forecasts.
Try several returns and contribution amounts. Money needed in the first year of college has less time to recover from losses than money intended for later years.
Compare college saving with retirement contributions and emergency reserves. A projected shortfall can also be addressed through school choice, aid or later cash flow; it does not automatically mean you should increase investment risk.
Source: IRS Publication 970.