College Savings Calculator
Find out how much to save each month to cover a future college cost, accounting for tuition inflation and investment growth.
How to use this calculator
- 1Enter today's cost of the college experience you're targeting, and how many years until it starts.
- 2Enter what you've already saved and an honest expected return.
How the calculation works
Future cost = Current cost × (1 + inflation)^years. Required monthly = (Future cost − FV of current savings) × r / ((1+r)^n − 1)- r
- Expected monthly investment return
- n
- Number of months until college starts
This is the future-value-of-an-annuity formula solved backwards for the payment — the same relationship behind every "how much do I need to save monthly to reach a target" calculator, just applied to a college-specific, inflation-adjusted target.
Worked example
$100,000 today, 10 years out, 5% cost inflation, $5,000 saved, 6% return
- 1.Future cost: $100,000 × 1.05¹⁰ = $162,889.46.
- 2.Current $5,000 grown at 6% for 10 years = $9,096.98.
- 3.Still needed: $162,889.46 − $9,096.98 = $153,792.48, funded by monthly contributions growing at 6% over 120 months.
- 4.Solving the annuity formula for the payment gives $938.45 a month.
Result: $938.45 a month
Why college costs compound differently than everyday inflation
Tuition, fees and room and board have historically tended to rise faster than general consumer prices over long stretches of time, which is exactly why this calculator asks for a college-specific inflation rate rather than reusing a generic figure. Because that growth compounds every year between now and enrollment, even a modest-looking gap between college cost inflation and everyday inflation adds up to a materially larger target the further out the timeline runs — a family saving for a toddler is facing a very different future number than one saving for a high-school junior, even at identical rates.
Where to actually put college savings
The account type matters almost as much as how much gets saved, because of how each is taxed and how each interacts with financial aid.
- 529 plan — a state-sponsored, tax-advantaged account built specifically for education costs. In the US, investment growth can be withdrawn tax-free for qualified education expenses, and many states also offer a state tax deduction or credit for contributions.
- Coverdell Education Savings Account — similar tax treatment to a 529 for qualified expenses, but with a much lower annual contribution limit and income restrictions on who can contribute — usually a supplement to, not a replacement for, a 529.
- UGMA/UTMA custodial account — assets are legally the child's, not the parent's, which removes investment restrictions but generally counts more heavily against the student in financial aid formulas and gives the child full control of the funds at the age of majority, for any purpose.
- Regular taxable brokerage account — no special tax treatment and no restriction on how the money is eventually used, offering maximum flexibility at the cost of the tax advantages the education-specific accounts provide.
How savings interact with financial aid
US federal financial aid formulas weigh assets differently depending on who legally owns them. Assets held in a parent's name — including a parent-owned 529 plan — are assessed at a relatively low rate against aid eligibility. Assets held directly in a student's name, including custodial UGMA/UTMA accounts, are typically weighted much more heavily against aid. This is one of the more common reasons families choose a parent-owned 529 over a custodial account for the same savings goal, independent of the investment itself.
Balancing college savings against other goals
A frequently repeated piece of financial planning advice is worth stating plainly: a student can borrow for college, but no one can take out a loan to fund retirement. That asymmetry is why many financial planners suggest maintaining retirement contributions — especially any employer match, which is close to free money — before maximizing college savings, even though delaying a child's education fund can feel like the more urgent goal in the moment.
What this assumes, and where it stops
Assumptions
- College cost inflation and investment returns are both assumed constant across the whole saving period, which real markets and tuition trends never quite are.
Limitations
- Does not account for financial aid, scholarships, or tax-advantaged account rules (such as 529 plan qualified withdrawal requirements).
- A single lump-sum future cost is used rather than modelling four separate annual payments during college — a reasonable simplification for a savings target, not for exact cash-flow timing.
Common questions
Why does college cost inflation matter so much?
Because it compounds over your entire savings horizon just like an investment return does, but working against you — at 5% inflation, a college cost roughly doubles every 14–15 years, which is why the "future cost" figure is so much higher than today's sticker price for anyone saving more than a few years out.
Should I use a 529 plan?
In the US, 529 plans let investment growth be withdrawn tax-free for qualified education expenses, which is a meaningful advantage over a regular taxable account for this specific goal — though the exact benefit depends on your state's tax treatment and the account's investment options and fees.
Formula and content last reviewed on .
Results are estimates for information only, not professional advice.
Related calculators
Tools people commonly use alongside the college savings calculator.