Are You Saving Enough
for Your Child's College?

How to use this calculator

This calculator projects what college will cost when your child starts school, adjusted for historical tuition inflation, then shows how much your current 529 balance will grow by then. The gap between those two numbers is what your monthly contributions need to cover.

• 1
  Enter your child's age and the type of school you are planning for
  You can always change this later. Using a private school cost as a starting point gives you a more conservative estimate. Many families end up spending less, which is fine.
• 2
  Enter your current 529 balance
  If you are just starting, enter zero. The calculator will show you what you need to save from scratch.
• 3
  Set a realistic expected return
  529 plans invest in mutual funds. A 7% return is commonly used for long time horizons with a growth-oriented allocation. For teenagers with less time, 4 to 5% is more conservative and appropriate.
• 4
  Review the monthly savings needed
  This is the number that matters. If it is uncomfortably high, consider what other resources might contribute, grandparents, scholarships, work-study, or loans for a portion, and what that does to the target.

How to interpret your results

• Time is the most powerful variable.Starting when a child is born versus waiting until they are 10 changes the monthly savings needed dramatically. If you are behind, the answer is to start now and save what you can, not to wait until you can save more.
• You do not need to fund 100% of college costs.Many families plan to cover 4 years of a state school and expect the child to contribute through work, scholarships, or a modest loan for the remainder. There is no rule that says you must fund everything. Clarifying your target changes the monthly number significantly.
• The 529 is not your only tool.The annual gift tax exclusion lets family members contribute without gift tax implications. Grandparents can contribute. Some states offer a tax deduction on contributions. Understanding all the inputs makes the monthly savings target more manageable.
• College cost inflation is not predictable.The 5% default in this calculator reflects historical averages, but actual increases vary by school type and year. Running the numbers at 4% and 6% gives you a reasonable range rather than a single point estimate.
• A plan beats a perfect number.Many families get paralyzed by the size of the college savings goal. The better approach is to pick a reasonable monthly contribution, automate it, and revisit annually. Consistency matters more than starting with the exact right number.

Common mistakes to avoid

• Waiting until the child is older to start saving.The single most common and costly mistake. Starting at birth versus starting at 10 can mean contributing three times as much per month to reach the same goal. Compound growth is doing the heavy lifting in the early years.
• Putting college savings ahead of retirement savings.Retirement comes first. Your child can borrow for college. You cannot borrow for retirement. If you are not maximizing your 401(k) match and hitting a reasonable retirement savings rate, college savings comes after that.
• Using the 529 for non-qualified expenses.Withdrawals for non-qualified expenses are subject to income tax and a 10% penalty on the earnings portion. Make sure you understand what qualifies before you withdraw.
• Putting the account in the child's name instead of a parent's name.For FAFSA purposes, student-owned assets are assessed more heavily than parent-owned assets. A 529 owned by a parent, with the child as beneficiary, is treated more favorably in financial aid calculations.
• Forgetting you can change the beneficiary.If your child earns a full scholarship, does not go to college, or you save more than you need, you can change the beneficiary to another family member, including yourself. Unused 529 funds are not lost.