College Savings Calculator

For a child born today, four years at a public in-state university is projected to cost roughly $130,000–$160,000 in 18 years, assuming 4%–5% annual cost inflation. Saving about $300–$450 per month in a 529 plan earning 6%–7% can fully fund that. For private college, plan on roughly double. Starting early is critical because compounding does most of the work.

A 529 plan is a state-sponsored, tax-advantaged account where investment earnings grow tax-free if used for qualified education expenses (tuition, fees, books, room and board). Many states also offer a state income tax deduction or credit on contributions. Unused funds can be transferred to another family member or, since 2024, rolled into a Roth IRA up to a $35,000 lifetime cap subject to rules.

Most planners say no - fund retirement first. Students can borrow for college, but no one will lend you money to retire. Aim to save at least to your employer 401(k) match before adding to a 529. Once retirement saving is on track (typically 15% of income), redirect surplus to college funds.

College costs have historically risen 4%–6% annually, faster than general CPI inflation. A degree that costs $100,000 today may cost about $200,000 in 18 years at 4% inflation. The calculator inflates today's costs forward and discounts your goal back to a realistic monthly contribution at your assumed return.