529 College Savings Calculator
Monthly saving needed to cover future tuition.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Monthly contribution needed
- $560.19
- Total future cost
- $201,249.50
- Your funding goal
- $140,874.65
- Current savings at college start
- $19,161.87
- Total you will contribute
- $80,667.14
- Growth earned
- $51,207.51
- First-year cost then
- $46,692.26
Quick answer
To plan 529 savings, inflate today's annual college cost to each year of study, add those years up, take the share you want to cover, subtract what current savings will grow to, then find the monthly deposit that reaches the rest. For a $26,000-a-year college 12 years away at 5% cost inflation, covering 70% with $9,000 already saved needs about $560 a month at a 6.5% return.
What the 529 College Savings calculator does
This calculator estimates what college will cost when your child enrolls, how much of that you aim to pay, and the monthly amount to put into a 529 plan (or any savings account) to get there. It counts each year of study separately, so the fourth year is inflated more than the first, and it grows your existing balance at the same return.
Use the full cost of attendance for the school type you have in mind — tuition, fees, housing, food and books — which colleges publish on their financial aid pages. Then choose the share you plan to fund; many families aim for a portion and expect scholarships, the student's earnings or loans to cover the rest. The student loan calculator shows what borrowing the gap would cost.
The result assumes the full amount must be saved by the first day of college and that your return stays constant. In reality, money for later years keeps growing during college, so the estimate leans slightly conservative.
The formula
Total cost = Σ (k = 0 to D − 1) cost × (1 + i)^(Y + k) Goal = total cost × share Need = goal − saved × (1 + R)^Y Monthly = need × (R ÷ 12) ÷ ((1 + R ÷ 12)^(12Y) − 1)
| Symbol | Meaning | Unit |
|---|---|---|
| cost | Annual cost of attendance today | $ per year |
| i | Expected yearly increase in college costs | % |
| Y | Years until the first year of college | years |
| D | Years of study | years |
| R | Expected annual investment return | % |
| share | Fraction of total cost you plan to cover | % |
The monthly figure is the standard sinking-fund (future value of an annuity) payment. Returns are not guaranteed: age-based 529 portfolios shift toward bonds and cash as enrollment nears, so returns in the final years are typically lower than in the early ones. Using a modest overall return such as 5–6.5% builds in some of that.
Worked examples
Private college, part funded, some savings
Parents of a 6-year-old targeting a $26,000-a-year cost of attendance, assuming 5% cost inflation and 6.5% returns, with $9,000 already in a 529 and a goal of covering 70%.
Inputs
- Annual cost today26000 $
- Years until college12
- Years of study4
- Education inflation5 %
- Investment return6.5 %
- Already saved9000 $
- Share you plan to cover70 %
Result
- Monthly contribution needed$560.19
- Total future cost$201,249.50
- Your funding goal$140,874.65
- Current savings at college start$19,161.87
- Total you will contribute$80,667.14
- Growth earned$51,207.51
Four years would cost about $201,000, the 70% goal is about $140,900, and saving $560 a month gets there. The first year alone would cost about $46,700.
In-state public university from birth
New parents starting from zero, planning for a public in-state school charging $11,500 a year today, 4% cost inflation and a 6.5% return, aiming to cover it all.
Inputs
- Annual cost today11500 $
- Years until college17
- Years of study4
- Education inflation4 %
- Investment return6.5 %
- Already saved0 $
- Share you plan to cover100 %
Result
- Monthly contribution needed$256.32
- Total future cost$95,124.43
- Your funding goal$95,124.43
- Current savings at college start$0.00
- Total you will contribute$52,288.67
- Growth earned$42,835.76
About $256 a month for 17 years funds an estimated $95,100. Investment growth would supply about $42,800 of that, which is the payoff of starting early.
Late start for an expensive school
Parents of a 10-year-old with $40,000 saved, facing a $62,000-a-year cost of attendance, 4% inflation, a 5.5% return and a plan to cover half.
Inputs
- Annual cost today62000 $
- Years until college8
- Years of study4
- Education inflation4 %
- Investment return5.5 %
- Already saved40000 $
- Share you plan to cover50 %
Result
- Monthly contribution needed$987.70
- Total future cost$360,317.91
- Your funding goal$180,158.96
- Current savings at college start$61,387.46
- Total you will contribute$94,819.43
- Growth earned$45,339.52
Covering half still needs about $988 a month. With only eight years left, contributions do most of the work, so it is worth checking the school's net price calculator for likely aid before committing.
What a 529 plan can pay for
Earnings in a 529 grow free of federal tax and come out tax-free when used for qualified education expenses.
| Expense | Qualified? | Notes |
|---|---|---|
| College tuition and required fees | Yes | Any eligible institution, including many abroad |
| Room and board | Yes, if enrolled at least half-time | Off-campus housing capped at the school's published allowance |
| Books, supplies, computers, internet | Yes | When used mainly by the student while enrolled |
| K-12 tuition | Yes, up to an annual cap | State tax treatment varies |
| Registered apprenticeship programs | Yes | Fees, books, supplies and equipment |
| Student loan repayment | Yes, up to $10,000 lifetime per borrower | Also available for each sibling |
| Transportation, insurance, sports fees | No | Earnings portion taxed plus 10% penalty |
Choosing the inflation and return inputs
Cost inflation: published college prices rose faster than general inflation for decades, though increases have been smaller in recent years. 4–5% a year is a cautious planning figure; use 3% if you expect costs to track general inflation.
Return: for a young child in an age-based portfolio, 6–7% is a common long-run assumption; with fewer than 8 years to go, 4–5.5% is more realistic as the portfolio de-risks.
The difference matters: each extra point of cost inflation over 15 years adds roughly 15% to the future bill. Run the calculator at a high and low setting to get a range, then aim for the middle.
What happens to unused 529 money
- Change the beneficiary to a sibling, cousin, parent or yourself without tax or penalty.
- Roll into a Roth IRA for the beneficiary: up to $35,000 over their lifetime, if the 529 has been open at least 15 years, subject to annual IRA contribution limits and the beneficiary having earned income.
- Withdraw it. Contributions come back tax-free; earnings are taxed as income plus a 10% penalty. The penalty is waived up to the amount of tax-free scholarships the student received.
The savings goal calculator is a better fit if you want flexible savings that are not tied to education.
How to use the 529 College Savings Calculator
- 1Look up today's annual cost of attendance for the type of school you are planning for, on its financial aid or 'cost of attendance' page.
- 2Enter years until the first year of college and years of study (4 for a bachelor's degree, 2 for an associate degree).
- 3Set cost inflation and an expected investment return; see the section above for sensible ranges.
- 4Enter your current 529 balance and the percentage of costs you plan to cover, then read the monthly contribution needed.
Frequently asked questions
How much should I save in a 529 per month?
It depends on the school, years left and the share you plan to cover. Starting at birth, roughly $250 a month can cover four years at a public in-state university under moderate assumptions; a private college can need two to three times that.
Does a 529 plan affect financial aid?
A parent-owned 529 counts as a parental asset on the FAFSA, assessed at no more than 5.64%, so $10,000 saved reduces aid eligibility by at most $564. Withdrawals from a parent-owned 529 are not counted as student income.
Can grandparents contribute to a 529?
Yes. Anyone can contribute, and under current FAFSA rules distributions from a grandparent-owned 529 no longer count as student income. Large gifts can use the five-year gift tax election.
Do I get a tax deduction for 529 contributions?
Not federally. Many states offer a state income tax deduction or credit, often only for contributions to the home state's plan, so check your state's rules before choosing a plan.
What if my child gets a scholarship?
You can withdraw up to the scholarship amount without the 10% penalty, though the earnings portion is taxed as income. Or keep the money for graduate school or another family member.
References
- Publication 970, Tax Benefits for Education — Internal Revenue Service
- An Introduction to 529 Plans — US Securities and Exchange Commission (Investor.gov)
- Trends in College Pricing — College Board
- Federal Student Aid Handbook — US Department of Education
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
- Report an error