College Savings Calculator
Saving for college is most effective when you start early and contribute consistently, allowing compound growth to do much of the work. This college savings calculator projects the future value of your savings using compound interest, then compares that balance to a projected four-year college cost that grows at an annual tuition inflation rate you specify. Enter your current savings balance, your planned monthly contribution, the expected annual return on your investments, and the number of years until your child starts college. You also enter the current annual cost of college (tuition, fees, room and board) and an assumed annual tuition inflation rate (historically 3 to 4% per year). The calculator shows your projected savings at college start, the projected first-year cost, the projected total four-year cost (with tuition inflation applied to each year), and any shortfall or surplus. This is a planning tool; consult a financial advisor for personalized college savings advice.
Projected savings: -- | Projected 4-year cost: --
How college savings projections work
FV = PV x (1+r)^n + PMT x ((1+r)^n - 1) / r
where r = monthly return, n = months
Future tuition cost = Current cost x (1 + inflation)^years.
Four-year total sums years 1 through 4 with tuition inflation applied each year.
Frequently asked questions
How much should I save for college?
The College Board's 2023 Trends in College Pricing report shows average published annual costs at four-year public in-state colleges of approximately $28,000 and at private non-profit colleges of approximately $60,000. Over four years, total costs (including tuition, room, board, books, and other expenses) can reach $112,000 to $240,000 at today's prices. Starting early and saving consistently is the most effective strategy.
What is a 529 college savings plan?
A 529 plan is a tax-advantaged savings account designed for education expenses. Contributions grow tax-free federally when used for qualified education expenses. Many states offer additional state tax deductions for contributions. Funds can be used at any accredited US college, university, trade school, or graduate school. Some plans allow K-12 private school tuition and student loan repayments. See IRS Publication 970 for details.
What return rate should I use for college savings?
A conservative estimate for a diversified stock and bond portfolio is 5 to 7% annually. For a 529 plan with an age-based allocation (more stocks when the child is young, shifting to bonds as college approaches), 6% is a reasonable planning assumption. More conservative, fixed-income heavy allocations might assume 3 to 4%. Adjust down as the child approaches college age.
How does tuition inflation affect my savings goal?
College tuition has historically increased at roughly 3 to 4% per year. This calculator applies a 4% annual increase to today's cost to project future tuition costs at the start of college. This means that what costs $30,000 today could cost approximately $44,400 in 10 years at 4% annual inflation. Your savings need to outpace both inflation and any gap between projected savings and projected costs.
What if my savings projection falls short of the estimated cost?
A projected shortfall means you may need to supplement savings with grants, scholarships, student loans, part-time work, or other aid. You can close the gap by increasing monthly contributions, starting earlier, choosing a lower-cost college, pursuing merit scholarships, or adjusting the expected investment return. The shortfall figure in this calculator is an estimate based on the assumptions you enter.
Sources
- IRS Publication 970, Tax Benefits for Education: irs.gov/publications/p970.
- College Board, Trends in College Pricing: research.collegeboard.org/trends/college-pricing.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. General information only; not financial advice.