529 College Savings Calculator
Estimate future college costs, see what your 529 savings will grow to, and find the monthly amount needed to close any gap.
Calculate Your College Savings Plan
Enter the full annual cost you are planning for: tuition, fees, room, board and books.
Estimate only — not financial advice. Returns and college costs are not guaranteed, and actual costs depend on the school your child attends.
| College year | Estimated annual cost |
|---|
How the 529 College Savings Calculator Works
A 529 plan is a state-sponsored, tax-advantaged account for education expenses. Money inside the account grows tax-free, and withdrawals are free from federal income tax when used for qualified education expenses such as tuition, fees, books, supplies, equipment, and room and board for a student enrolled at least half-time.
Contributions are not deductible on a federal tax return. Many states offer a state income tax deduction or credit for contributions to their own state’s plan, but the amount and rules vary by state, so check your own state’s plan before assuming a benefit.
For 2026, the federal annual gift tax exclusion is $19,000 per donor per beneficiary ($38,000 for a married couple gift-splitting). Contributions above that amount may require filing IRS Form 709, though filing does not necessarily mean gift tax is owed. A special 529 rule lets one donor contribute up to five years of exclusions at once in 2026 — $95,000, or $190,000 for a married couple — by electing to spread the gift over five years.
The Formula
First-year cost = current annual cost × (1 + cost inflation) ^ years to college
4-year cost = first-year cost + year 2 + year 3 + year 4, each inflated one more year
Projected savings = current savings grown at the annual return + monthly contributions compounded monthly
Monthly needed = the monthly payment that grows current savings to the full 4-year cost
Worked Example: Age 5 to 18, $10,000 Saved, $250 a Month
With the default inputs — a 5-year-old starting college at 18, $10,000 already saved, $250 a month, a 6% annual return, 3% college cost inflation, and a $30,000 current annual cost — the calculator projects a first-year cost of about $44,056 and a 4-year total of about $184,314. Projected savings at age 18 are about $80,191, leaving a gap of about $104,123, which would need about $692 a month from today (keeping the $10,000 already saved) to fully close.
College Costs Have Risen Faster Than General Inflation Over the Long Run
Over the 21st century, college tuition has on average risen faster than general inflation — Education Data Initiative figures put average annual tuition inflation at about 3.75% against about 2.56% general inflation. More recently the pace has cooled: the Commonfund Higher Education Price Index rose 3.6% in fiscal 2025, against a 2.6% Consumer Price Index. That is why the default cost-inflation assumption here is 3%, not the long-run average and not zero.
| Planning assumption | Why it matters |
|---|---|
| College cost inflation: 3% a year | Recent HEPI and tuition trends sit near this level; a higher rate sharply raises the 4-year target. |
| Investment return: 6% a year | A balanced portfolio assumption, not a guarantee; age-based 529 portfolios typically reduce risk as college nears. |
| Current annual cost: $30,000 | A planning placeholder between public in-state totals and private totals; replace it with your target school’s figure. |
How to Use Your Result
- If you have a gap: raise the monthly contribution toward the “monthly needed” figure, start earlier if you can, or plan a mix of savings, grants, and student earnings rather than assuming loans cover everything.
- If you have a surplus: you can keep the extra for graduate school, change the beneficiary to another family member, or, under SECURE 2.0 rules, roll up to $35,000 lifetime from a long-held 529 into the beneficiary’s Roth IRA, subject to strict conditions.
- Review yearly: re-run the numbers when costs, returns, or your target school change, and shift to lower-risk investments as college approaches.
- Do not over-save blindly: non-qualified withdrawals face income tax on the earnings plus a 10% additional tax, with exceptions for scholarships, disability, death, and military academy attendance.
