529 Plan Calculator

A 529 plan is a tax-advantaged savings account designed specifically for education expenses. Contributions grow tax-free, and withdrawals used for qualified education expenses — including 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, the type of college you're targeting, your current savings, and your expected rate of return. Generally, starting early and contributing consistently is more powerful than larger contributions later, thanks to compound growth. This calculator shows you exactly how different monthly amounts affect your coverage.

A commonly used assumption is 5–7% annually, based on historical stock market averages for age-based or diversified 529 portfolios. Younger children typically have more aggressive, higher-returning portfolios, while portfolios shift more conservative as college approaches. The default of 6% is a reasonable middle-ground estimate.

The calculator starts with current average annual college costs by institution type (public in-state, out-of-state, private, or community college) and applies your chosen annual cost increase rate over the number of years until your child enrolls at age 18. This accounts for tuition inflation, which has historically averaged 4–6% per year.

The 'Estimated Remaining Out-of-Pocket' figure shows the gap between your projected savings and total college costs. You can cover this gap through financial aid, scholarships, student loans, work-study programs, or by increasing your monthly contributions. Every dollar saved now reduces the amount you or your student may need to borrow later.

Yes. Qualified 529 withdrawals cover a wide range of education expenses including tuition and fees, room and board, textbooks, computers and required technology, and even K–12 tuition up to $10,000 per year. Non-qualified withdrawals are subject to income tax and a 10% penalty on earnings.

Household income affects your eligibility for need-based financial aid (grants and scholarships). Higher-income families may receive less institutional aid and therefore need to save more independently. This calculator includes a scholarships and grants field so you can factor in expected aid and get a more realistic out-of-pocket estimate.

Enter your existing balance in the 'Current 529 Savings' field. The calculator compounds that balance at your expected return rate alongside your monthly contributions, showing you how your total projected savings stack up against future college costs by enrollment time.