529 College Savings Calculator
Project your 529 college savings plan balance at enrollment.
What this calculator does
This calculator does the arithmetic behind a college savings plan. Enter what you have saved, your child's current age, the total cost you are aiming at, an expected annual return, and your monthly contribution, and it projects the balance at college age.
It also solves the question most parents actually want answered: how much do I need to put in each month to get there? The years available, the amount already saved, and the return assumption all compound together, which is why starting at age two rather than age ten changes the required monthly figure so dramatically.
When to use it
The first useful moment is shortly after a child is born, when eighteen years of compounding is still available and small contributions do most of the work. Running the numbers then usually reveals that a manageable monthly figure gets much further than expected.
The second is around ages twelve to fourteen, when the plan needs an honest review. If the projection falls short, there is still time to increase contributions, adjust the target toward in-state options, or plan for a partial loan. Discovering the gap during senior year leaves almost no room to respond.
Understanding the inputs
Current savings is the existing 529 balance. Child's age drives the number of years available, calculated to age 18. The college cost target should be the total four-year cost in future dollars — take today's published cost of attendance and inflate it, since education inflation has historically run above general CPI.
Annual return should reflect your actual allocation. An age-based portfolio for a young child might reasonably assume 6 to 7 percent, but that assumption has to come down as the glide path shifts into bonds. Monthly contribution is what you are putting in now, before any employer or grandparent additions.
How is this calculated?
Years = College Age − Child Age. FV = PV(1+r)^n + PMT × [(1+r)^n − 1]/r × (annual/monthly adjustment).
A worked example
A family with a 3-year-old has $10,000 saved and wants $180,000 available at 18 — fifteen years of growth. At a 6 percent annual return, the existing $10,000 compounds to about $23,966 on its own, leaving roughly $156,034 to be funded by contributions.
At 6 percent compounded monthly over 180 months, each dollar of monthly contribution grows to about $290.82. Dividing $156,034 by that gives a required contribution of roughly $537 a month. Waiting five years to start, leaving only ten years, pushes the same target to roughly $989 a month, nearly double.
Limitations and assumptions
The projection assumes a single flat annual return with no volatility. Real markets do not deliver that, and the sequence of returns matters enormously — a poor market in the two years before enrollment can leave a plan short even when the average return was fine. Past returns do not predict future ones.
It does not model state tax deductions, plan fees, financial aid, scholarships, or the possibility that costs inflate faster than assumed. Nothing here is investment or tax advice. State plan rules vary widely, so confirm the specifics of yours before committing to a strategy.
Common Questions
- How much should I save for college?
- Work backwards from a target rather than picking a round number. Four years at a public in-state university currently runs roughly $110,000 to $120,000 all in, and private colleges considerably more. Inflate that by 4 to 5 percent a year until your child turns 18 to get the figure your plan actually needs to hit.
- What are the tax advantages of a 529 plan?
- Contributions grow federally tax-free and withdrawals for qualified education expenses are untaxed. Over thirty-plus states also offer a state income tax deduction or credit for contributions, sometimes only for the in-state plan. That state benefit is often the deciding factor in which plan to choose.
- What counts as a qualified expense?
- Tuition, mandatory fees, books, supplies, required equipment, and room and board for students enrolled at least half time. Computers count. Up to $10,000 a year can go toward K-12 tuition, and up to $10,000 lifetime toward student loan repayment for the beneficiary and each sibling.
- What happens if my child does not go to college?
- You have several options. Change the beneficiary to another family member, including yourself, with no tax consequence. Use it for trade schools or apprenticeship programs, which qualify. Or, under rules effective from 2024, roll up to $35,000 lifetime into the beneficiary's Roth IRA subject to holding-period and annual limits.
- How do 529 assets affect financial aid?
- Favorably, when the parent owns the account. Parent-owned 529s are treated as parental assets and assessed at a maximum of 5.64 percent on the FAFSA, versus 20 percent for assets held in the student's name. Recent FAFSA changes also removed the penalty on distributions from grandparent-owned accounts.
- Are there contribution limits?
- No annual federal limit, but contributions are gifts. The annual gift tax exclusion applies per donor per beneficiary, and 529s uniquely allow superfunding — five years of exclusions contributed at once. Plans also set aggregate balance caps, commonly between $350,000 and $550,000 depending on the state.
- What is an age-based portfolio?
- An investment option that starts equity-heavy when the child is young and shifts progressively into bonds and cash as college approaches. It is the default in most plans and removes the risk of a market drop in the year tuition is due. The tradeoff is lower expected growth in later years.
- What if I withdraw money for something else?
- Earnings on a non-qualified withdrawal are subject to income tax plus a 10 percent federal penalty. Your original contributions come back tax-free, since they were made with after-tax dollars. Some states also recapture any deduction you previously claimed, so check the rules of your specific plan.
- Should I use a 529 or a Roth IRA?
- A 529 is purpose-built and generally more efficient for education, particularly where a state deduction is available. A Roth offers more flexibility if college may not happen, since contributions can be withdrawn anytime. Many families use both, and the 529-to-Roth rollover provision has narrowed the gap considerably.