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College Savings Calculator (529 Plan)

Updated · By the CalculatorDash editorial team · How we check our maths

Quick answer

Plan for costs to rise faster than general inflation. A degree costing $30,000 a year today will cost about $50,000 a year in 13 years at 4% tuition inflation, around $210,000 for four years. To cover half of it, with $5,000 already saved, you'd put away about $400 a month at a 6% return.

College savings plan

years
years
$
years
%
%
$
%

Save per month

$404

Projected total cost
$212,120
Your savings goal
$106,060
First-year cost
$49,952
Years until college
13 years

How this calculator works

College costs have historically risen faster than general prices, so today's sticker price understates what you will pay. The calculator inflates today's yearly cost to the year your child starts, adds up each year of study at that rising cost, and takes the share you want to cover.

It then grows what you have already saved, works out the gap, and finds the monthly amount that fills the gap at your expected return by the time college starts. In the US a 529 plan grows tax-free when spent on qualified education costs, and many states give a tax deduction on contributions. In India, equity mutual fund SIPs and Sukanya Samriddhi are common choices.

Very few families pay the full sticker price. Grants, scholarships and the student's own work usually cover part, which is why the 'share you want to cover' input matters.

The formula

First-year cost
today's cost × (1 + college inflation)^years until college
Total cost
first-year cost × ((1 + i)^years of study − 1) ÷ i
Monthly saving
(goal − savings grown) × r ÷ ((1 + r)^months − 1)

Worked example

$30,000 today, 13 years away at 4% inflation, becomes about $49,950 for the first year and about $212,000 for four years. Covering half is about $106,000. $5,000 already saved grows to about $10,900 at 6%, leaving about $95,200 to save: roughly $404 a month.

Tips

  1. 01Start early: the same goal costs about half as much per month if you begin at birth instead of age ten.
  2. 02Ask grandparents to contribute to the plan directly instead of buying gifts.
  3. 03Move to safer investments as college gets close so a market fall doesn't hit the tuition money.

Frequently asked questions

How much should I save for college each month?

It depends on the school, how many years away it is and the share you want to cover. Many families aim for a third to a half and expect grants and work to fill the rest.

What is a 529 plan?

A US tax-advantaged account for education. Growth is tax-free when used for qualified education expenses.

What inflation should I assume for college costs?

Around 3–5% a year in the US historically; education costs in India have risen 8–10% a year.