529 / college savings calculator

How this calculator works

Enter your child's current age, target college enrollment age, current 529 balance, monthly contribution, expected investment return, estimated annual college cost in today's dollars, and a tuition inflation rate. The calculator projects your 529 balance at enrollment and the estimated total 4-year cost in future dollars, then shows the funding gap and monthly contribution needed to close it.

The 529 balance is projected using monthly compounding on both the current balance and ongoing contributions. College costs are inflated from today's dollars using the tuition inflation rate applied starting from the current date, and summed over 4 years of enrollment. If projected savings exceed the estimated cost, the calculator shows a surplus.

What affects the result

• Years until enrollment is the most powerful variable. Starting early, even with a small monthly contribution, allows compounding to do significant work.
• Tuition inflation has historically averaged 3–5% annually — higher than general inflation. A 4% default means costs double roughly every 18 years.
• Expected return depends on your 529 investment option. Age-based portfolios typically hold more stocks early (potentially 6–8% target return) and shift to bonds near enrollment (3–5%). The default of 6% is a moderate assumption.
• Current balance gets a head start on growth. Even a small initial deposit, such as a gift from grandparents, meaningfully reduces required monthly contributions over a long horizon.
• Annual college cost varies widely. 2024 averages: public in-state 4-year college ~$27,000/year; public out-of-state ~$45,000/year; private ~$58,000/year. Adjust based on the type of school you're planning for.

Real-world examples

1. Baby starting at birth. 0 years old, enrollment at 18, $0 balance, $250/month, 6% return, $35,000/year cost, 4% tuition inflation. Projected 529 balance at enrollment: approximately $96,000. Projected 4-year cost at enrollment: approximately $196,000. Funding gap: ~$100,000. Required monthly: ~$515.

2. 5-year-old, head start. Age 5, enrollment at 18, $15,000 balance, $400/month, 6% return, same cost/inflation assumptions. Projected 529: approximately $134,000. Projected cost: ~$176,000. Gap: ~$42,000. Better position from an early start.

3. 10-year-old, late start. Age 10, enrollment at 18, $5,000 balance, $500/month, 6% return. Projected 529: approximately $62,000. Projected cost: ~$152,000. Gap: ~$90,000. Late starts are harder to overcome — contributions matter more, growth has less time to compound.

4. Over-funded scenario. $25,000 balance, $600/month, 6% return, 8 years to enrollment. Projected 529 exceeds cost — a surplus means you can reduce contributions, accelerate savings for sibling, or plan for graduate school costs.

Tax advantages of 529 accounts

529 contributions are made with after-tax dollars (no federal deduction), but growth and withdrawals for qualified education expenses are federal income tax-free. Over 30 states also offer a state income tax deduction or credit for contributions. Investment choices and tax rules vary by state plan — you can use any state's plan regardless of where your child attends school.

Qualified expenses include tuition, fees, books, room and board (if enrolled at least half-time), computers and technology required for enrollment, and K–12 tuition up to $10,000/year. Non-qualified withdrawals owe income tax plus a 10% penalty on the earnings portion.

Common mistakes

• Waiting to start. Every year of delay means less compounding time. Starting with $50/month at birth beats starting with $200/month at age 10 in many scenarios.
• Over-saving and triggering penalties. If you save more than needed and your child doesn't attend college, funds can be transferred to another family member's 529, used for K–12 expenses, or used for student loan repayment (up to $10,000). Unneeded excess faces tax and penalty on earnings.
• Underestimating costs. Many parents plan for in-state public college costs but their child ultimately attends private school or out-of-state. Building in a buffer or running multiple scenarios helps.
• Using conservative return assumptions too early. Age-based 529 plans automatically shift allocations, but manually managed accounts may stay too conservative early when growth matters most.
• Ignoring financial aid implications. 529 accounts owned by a parent are counted at 5.64% in the federal financial aid formula — a smaller impact than student-owned assets at 20%.

When to use this calculator

Use this calculator when starting or contributing to a 529 plan, deciding how much to save, or checking whether your current savings pace will meet expected costs. Run it with different cost assumptions (in-state, out-of-state, private) to build a range of scenarios.

For overall savings and investment planning, use the savings goal calculator and compound interest calculator. For broader family financial planning, see the net worth calculator.

Frequently asked questions

What is a 529 plan? A 529 plan is a tax-advantaged savings account designed for education expenses. Contributions grow tax-free federally, and withdrawals for qualified education expenses are also tax-free. Plans are sponsored by states but available to residents of any state. The SECURE 2.0 Act of 2022 allows rolling unused 529 funds (after 15 years) to a Roth IRA for the beneficiary, up to $35,000 lifetime.

What are qualified 529 expenses? Tuition and fees, books and supplies, room and board (if enrolled at least half-time), computers and internet access required for school, and special needs equipment. K–12 tuition up to $10,000/year. Apprenticeship programs and student loan repayment up to $10,000 lifetime. Non-qualified withdrawals owe income tax plus a 10% penalty on earnings.

Can I use any state's 529 plan? Yes. You are not limited to your home state's plan. However, many states offer tax deductions or credits only for contributions to their own plan. If your state offers a meaningful tax benefit, the in-state plan is often the right choice. If not, compare investment options and fees across top-rated plans.

What if my child doesn't go to college? You can change the beneficiary to another family member (sibling, cousin, parent, etc.) with no penalty. You can withdraw for K–12 tuition (up to $10,000/year). Starting in 2024, you can roll unused funds to a Roth IRA for the beneficiary (subject to annual IRA limits, a 15-year ownership requirement, and a $35,000 lifetime cap). Non-qualified withdrawals owe tax and 10% penalty on earnings only, not contributions.

Does a 529 affect financial aid? Parent-owned 529 accounts are assessed at 5.64% in the FAFSA Expected Family Contribution formula — meaning up to 5.64 cents of every dollar is considered available for college costs. This is better than student-owned assets (assessed at 20%) and far better than income. Grandparent-owned 529 accounts used to have a larger impact but FAFSA simplification (effective for the 2024–25 aid year) significantly reduced their financial aid effect.

Related calculators

Project general savings growth with the compound interest calculator. Set a specific savings target with the savings goal calculator. Calculate how inflation erodes purchasing power with the inflation calculator. Build a complete financial picture with the net worth calculator.