529 College Savings Calculator

The 529 College Savings Calculator projects how far your 529 plan will go toward the future cost of college. It grows your current balance and monthly contributions at your expected return, inflates today's tuition to your child's actual enrollment year, and runs a year-by-year drawdown simulation to show whether your savings last all the way through college — not just whether they clear a single lump-sum number. You also get the exact monthly contribution needed to fully fund the goal.

What Is a 529 Plan?

A 529 plan is a tax-advantaged investment account designed for education savings. Money you contribute grows tax-deferred, and withdrawals are completely tax-free when spent on qualified education expenses such as tuition, mandatory fees, books, computers, and room and board. Most US states sponsor at least one plan, and many offer a state income tax deduction or credit for contributions, which makes the 529 one of the most efficient ways to save for college.

How the 529 Calculator Works

This calculator models two timelines at once — your savings growing and college costs rising — then simulates spending the savings down over the college years.

In Step 1, P is your current balance, C is your monthly contribution, i is the monthly return (annual return ÷ 12), and n is the number of months until college. Step 2 inflates today's cost forward to each enrollment year. The drawdown simulation then withdraws each year's tuition while the leftover balance keeps earning a return, so the coverage figure in Step 3 reflects what your plan can really pay across all the college years.

Typical Annual College Costs (2025–2026)

Use these published average figures as a starting point for "today's annual cost," then adjust for the specific schools you are considering. These are full cost of attendance (tuition, fees, and room and board).

How Much Should You Save in a 529?

A widely used rule of thumb is the "one-third rule": aim to cover about one-third of college costs from savings, one-third from current income while your child is enrolled, and one-third from financial aid, scholarships, or loans. That is why this calculator lets you set the share of cost you want the 529 to cover — set it to 100% to fully prefund, or to 33% to target the savings third. Whatever you choose, the backward solver tells you the monthly contribution required to hit it.

Why College Cost Inflation Matters So Much

College prices have historically risen faster than general inflation — often around 5% per year. At 5%, costs roughly double every 14 years, so a $28,000 program today could exceed $67,000 per year for a newborn starting college in 18 years. Planning against today's sticker price dramatically understates the bill. Always project the cost forward to the actual enrollment year, which this tool does automatically.

What Affects Your 529 Outcome?

How to Use This Calculator

1. Enter your child's timeline: Their current age, the age they will start college, and how many years to plan for.
2. Enter your savings plan: Current 529 balance, monthly contribution, and expected annual return.
3. Enter the cost: Today's annual college cost, an inflation rate (5% is a common default), and the share you want the 529 to cover.
4. Click Calculate: See your projected savings, the future tuition bill, your coverage percentage, and a year-by-year drawdown.
5. Adjust your plan: Use the suggested monthly contribution to close any shortfall, then recalculate.

Frequently Asked Questions

What is a 529 college savings plan?

A 529 plan is a tax-advantaged investment account designed to help families save for education. Contributions grow tax-deferred and withdrawals are tax-free when used for qualified education expenses such as tuition, fees, books, and room and board. Many US states also offer a state income tax deduction or credit for contributions.

How does this 529 calculator work?

The calculator grows your current balance plus monthly contributions at your expected return until college starts, then inflates today's college cost to each future enrollment year. It runs a year-by-year drawdown simulation in which tuition is withdrawn each college year while the remaining balance keeps earning a return, so it shows whether your savings last all the way through college.

How much should I save in a 529 plan?

A common guideline is to aim for about one-third of projected college costs from savings, one-third from current income, and one-third from financial aid or loans. This calculator lets you set the share of cost you want the 529 to cover and then tells you the exact monthly contribution needed to reach that target.

What return should I assume for a 529 plan?

Many 529 plans use age-based portfolios that start aggressive and grow more conservative as college approaches. A long-term average annual return of 5% to 7% is a common planning assumption, though actual returns vary with market performance and your investment choices. Lower the assumed return as the enrollment date nears to be conservative.

What happens to leftover 529 money?

Unused 529 funds can be left to grow, transferred to another eligible family member, or used for K-12 tuition, apprenticeships, or student loan repayment within limits. As of 2024, up to $35,000 of leftover funds can also be rolled into a Roth IRA for the beneficiary under certain conditions. Non-qualified withdrawals are taxed and face a 10% penalty on earnings.

Does college cost inflation really matter?

Yes. College costs have historically risen faster than general inflation, often around 5% per year. Over 18 years, a 5% annual increase roughly doubles the cost, so projecting today's price forward to the actual enrollment year is essential for setting a realistic savings target.

Additional Resources

• 529 Plan - Wikipedia
• Compound Interest - Wikipedia