College Savings Calculator
The inflated cost, what your plan reaches, and the contribution that closes the gap.
Each year of study is priced in the year it is actually paid, which is why the total is far above $120,000 in today’s money. Education costs have historically outrun general inflation, so treating the price as fixed is the single biggest way these projections go wrong. A 529 plan grows tax free for qualified expenses and many states add a deduction, which this does not model.
Worked example. $30,000 a year today, ten years out, inflating 5% a year. The four years of study are not $120,000: each is paid at its own future price, so the total exceeds $200,000. That gap between the sticker price today and the bill when it arrives is the single biggest reason these projections go wrong.
Frequently asked questions
What inflation rate should I use?
College costs have historically outrun general inflation, often in the 4 to 6% range, though growth has moderated recently. Using general inflation understates the target; using 8% may overstate it. Run a range.
What is a 529 plan?
A tax-advantaged account for education. Growth is tax free when used for qualified expenses, many states offer a deduction or credit for contributions, and unused funds can be moved to another beneficiary or, within limits, rolled to a Roth IRA.
Should I save for college or retirement first?
Retirement, in almost every case. There are loans, grants, and scholarships for education, and none for retirement. Underfunding your own retirement to pay tuition often ends up costing your children more later.
Do I need to cover the full sticker price?
Rarely. Financial aid, scholarships, in-state tuition, work, and paying some costs from current income all reduce the number. Many families target half and treat that as a success.
Related tools
Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.