College Savings Calculator (529 Plan)

A 529 plan is a tax-advantaged savings account designed specifically to help families save for future education expenses. Contributions grow tax-free, and withdrawals used for qualified education expenses — such as tuition, fees, books, and room and board — are also tax-free at the federal level. Many states also offer additional tax deductions for contributions.

The right monthly contribution depends on your child's age, your target school type, and how much you've already saved. As a general rule, starting early dramatically reduces the monthly amount needed because your investments have more time to grow. Use the calculator above to dial in a contribution that covers your target percentage of total college costs.

Most financial planners suggest using a 5–7% average annual return for a diversified age-based 529 portfolio. Younger children can be invested more aggressively (potentially higher returns), while portfolios typically become more conservative as college approaches. A 6% default is a reasonable middle-ground assumption.

College tuition and fees have historically increased at roughly 4–6% per year — faster than general inflation. This calculator applies your chosen annual cost increase rate to project what tuition will actually cost when your child enrolls, giving you a more realistic savings target than using today's prices alone.

You're on track if your projected 529 balance covers 100% (or your target percentage) of the net college cost. If the calculator shows a savings gap, you can close it by increasing your monthly contribution, adjusting your expected rate of return, or factoring in additional aid. Even covering 50–75% of costs can significantly reduce the need for student loans.

Yes — 529 plan funds can be used at virtually any accredited college, university, vocational school, or graduate program in the United States and many abroad. Funds can cover tuition, fees, books, supplies, room and board, and even certain K-12 expenses up to $10,000 per year under current federal law.

If your child doesn't use the 529 funds, you have several options: change the beneficiary to another family member (including yourself), save the funds for future graduate school, use up to $35,000 (lifetime limit) to roll over into a Roth IRA for the beneficiary, or withdraw the funds — though non-qualified withdrawals are subject to income tax and a 10% penalty on earnings only.

Household income can affect your eligibility for need-based financial aid. Higher-income families typically qualify for less aid, making personal savings even more critical. Lower-income families may receive more grants, reducing the amount they need to save. Your household income can also determine whether you qualify for state tax deductions on 529 contributions.