529 College Savings Calculator
A 529 college savings plan is a tax-advantaged investment account designed to fund education expenses. Contributions grow tax-free, and qualified withdrawals for tuition, fees, room and board are also tax-free. Many states offer additional tax deductions for contributions to their own 529 plans. This calculator projects your 529 balance at the time your child starts college and compares it against the projected cost of a four-year degree. Enter your child's current age, the college start age, your current 529 balance, annual contributions, expected investment returns and expected college cost inflation. The tool shows whether you're on track to fully fund college, and if not, calculates the additional contribution needed to close any gap. You can also explore scenarios: adjust your contribution amount, expected return or college cost to see how each affects your progress toward financial readiness for education.
Starting at age 5 with $10,000 saved, contributing $3,600/year at 6% return, your projected 529 balance at age 18 is $89,305 vs projected 4-year college cost of $233,110: estimated shortfall of $143,805.
This calculator is for illustration only. Actual college costs vary significantly by institution. Use your specific institution's net price calculator for personalized estimates.
How to read the badges beside each field: Official figures come from a cited authority; Regional average and Illustrative assumption values are editable placeholders, so replace them with your own figure before you rely on the result.
How the 529 projection is calculated
Both the savings projection and the college cost projection use the standard future value formula, consistent with the compound interest approach described in IRS Publication 970.
Savings FV = balance x (1 + r)^n + contrib x ((1 + r)^n - 1) / r
where r = annual return rate, n = years until college
Projected 4-year cost = currentAnnualCost x (1 + inflation)^n x 4
Gap = projected cost - projected 529 balance
Break-even contrib = (cost - balance x (1+r)^n) x r / ((1+r)^n - 1)
Worked example
Child aged 5, college at 18 (13 years), $10,000 current balance, $3,600/year contribution, 6% return, $35,000/year current cost, 4% cost inflation:
- 529 balance at 18: $10,000 x (1.06)^13 + $3,600 x ((1.06)^13 - 1) / 0.06 = $21,329 + $67,976 = $89,305
- Projected 4-year cost: $35,000 x (1.04)^13 x 4 = $35,000 x 1.66507 x 4 = $233,110
- Gap = $233,110 - $89,305 = $143,805 shortfall
529 plan key facts
529 plans are sponsored by states, state agencies, or educational institutions and regulated by IRS Publication 970. You do not have to use your own state's plan; you can open a plan in any state and use it at any eligible school nationwide (and many abroad). When selecting a plan, compare investment options, fees, and whether your state offers a tax deduction only for its own plan or for any plan.
The SEC provides an introduction to 529 plans at investor.gov, covering plan types, how to open an account, and what happens if funds are not used.
Gift tax and superfunding
Contributions to a 529 are treated as gifts for federal gift tax purposes. The annual exclusion for 2026 is $19,000 per beneficiary ($38,000 for married couples filing jointly using gift-splitting), per the IRS gift tax FAQ (the exclusion is $19,000 for both 2025 and 2026). If you want to contribute a larger lump sum, the superfunding election allows you to spread up to $95,000 ($190,000 for couples) over five years for gift tax purposes. File Form 709 to elect the 5-year spread.
529-to-Roth IRA rollover (SECURE 2.0)
Starting in 2024, you can roll over unused 529 funds into a Roth IRA for the beneficiary. The plan must have been open for at least 15 years, rollovers are subject to annual Roth IRA contribution limits, and the lifetime rollover limit is $35,000 per beneficiary. This provision significantly reduces the risk of over-saving in a 529.
Where 529 projections quietly go wrong
The single biggest reason a 529 projection disappoints is not the return you assume, it is the college inflation you do not. This tool grows your target cost at whatever rate you enter, and even a modest 4% compounded over 13 years turns a $35,000 sticker price into roughly $58,000 a year before you add room, board, and fees. Sticker price is also rarely what families actually pay: run each target school through its own federal net price calculator, then enter that lower net figure here so your goal reflects grants and scholarships rather than the published rate.
Two federal rules reward planning. Superfunding lets you front-load up to five years of the annual gift tax exclusion into a single contribution, which buys extra compounding years, but you must file Form 709 and make no further gifts to that beneficiary during the five-year window. The SECURE 2.0 Roth rollover (lifetime cap of $35,000) softens the fear of over-saving, yet the account must be at least 15 years old, and changing the beneficiary can restart that clock.
One figure this tool deliberately does not model is your state income tax deduction. Many states reward contributions only to their own plan, and a handful recapture the deduction if you later roll funds to another state's plan, so check your department of revenue before you switch.
529 college savings: frequently asked questions
What is a 529 plan?
A 529 plan is a tax-advantaged savings account designed to encourage saving for education expenses. It is authorized under Section 529 of the Internal Revenue Code and governed by IRS Publication 970. Contributions are made with after-tax dollars at the federal level, but many states offer a state income tax deduction or credit for contributions to the state's own 529 plan. Earnings grow tax-free and qualified withdrawals for education expenses are also tax-free.
Can I use a 529 for K-12 expenses?
Yes. The 2017 Tax Cuts and Jobs Act first allowed K-12 tuition withdrawals, and the 2025 One Big Beautiful Bill Act (Public Law 119-21) raised the annual limit from $10,000 to $20,000 per beneficiary for tax years beginning after December 31, 2025. So for 2026 onward, up to $20,000 per year per beneficiary can be withdrawn tax-free for tuition at a public, private, or religious K-12 school. This limit applies per beneficiary per year, not per plan. State tax treatment of K-12 withdrawals varies; check your state's rules before using funds this way.
What if my child does not go to college?
You have several options. You can change the beneficiary to another family member (sibling, cousin, parent, or other qualifying relative) without penalty. You can save the funds for graduate school or other qualified education expenses. Starting in 2024, under the SECURE 2.0 Act, unused 529 funds can be rolled over into a Roth IRA for the beneficiary (subject to lifetime limits of $35,000 and annual Roth IRA contribution limits). Non-qualified withdrawals incur income tax plus a 10% penalty on the earnings portion only (not the principal).
Does my state offer a 529 tax deduction?
Many states offer a state income tax deduction or credit for contributions to the state's own 529 plan. Some states allow deductions for contributions to any state's plan. The rules and amounts vary widely by state. Check your state's department of revenue website for current rules. This calculator does not model state deductions; add your state deduction to the federal picture for a complete estimate.
What are qualified education expenses for a 529?
Qualified higher education expenses include tuition, fees, books, supplies, equipment, room and board (if the student is enrolled at least half-time), and the cost of a computer used for school. Certain apprenticeship program costs and student loan repayments (up to $10,000 lifetime per beneficiary) are also qualified under current law. Non-qualified expenses include transportation, insurance, and extracurricular activities. See IRS Publication 970 for the complete list.
What is the 529 gift tax annual exclusion for 2026?
You can contribute up to $19,000 per year per beneficiary ($38,000 for married couples using gift-splitting) without triggering federal gift tax reporting; this is the IRS annual gift tax exclusion for both 2025 and 2026. 529 plans also allow 'superfunding': you can make a lump-sum contribution of up to five years of annual exclusions at once ($95,000 per beneficiary, or $190,000 for married couples), provided you do not make additional gifts to the same beneficiary during those five years and you file Form 709 to elect the 5-year spread.
Official sources
- 529 plan tax rules and qualified expenses: IRS Publication 970, Tax Benefits for Education.
- SEC 529 plan introduction: SEC investor.gov, What is a 529 Plan?
- Gift tax annual exclusion: IRS Topic No. 503, Deductible Taxes.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial advice.