College Savings Calculator
Plan your child's education fund. Enter your savings target, current balance, and monthly contribution to see your projected balance at enrollment, how much you need to save each month, and whether you're on track.
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Education Fund Planner
Enter your goal and savings details to see your projected college fund balance.
College Savings Guide
529 vs. UTMA: Which account is right?
A 529 plan offers tax-free growth and tax-free withdrawals for qualified education expenses. It's the gold standard for dedicated college savings. A UTMA account (Uniform Transfers to Minors Act) is a taxable brokerage account — gains are taxed, but funds can be used for anything once your child comes of age. Choose 529 if you're confident in college; choose UTMA if you want more flexibility.
Accounting for tuition inflation
College costs have historically risen at 3–5% per year — faster than general inflation. If tuition is $30,000 today and rises 4% annually, in 15 years it will cost about $54,000 per year. Multiply by four years and your target jumps to over $216,000. Use a conservative return assumption (5–6%) net of inflation when setting your savings target, or increase your target by 4% per year remaining.
How much should you save?
The most-cited benchmark is the "Rule of Thirds": target one-third of projected costs from savings, one-third from income during school years, and one-third from financial aid, scholarships, and loans. For a public in-state school at today's costs (~$28,000/year), that means saving roughly $37,000 by enrollment. For a private school (~$58,000/year), your savings target grows to $77,000. Always adjust for tuition inflation over your time horizon.
Investment options inside a 529
Most 529 plans offer age-based portfolios that automatically shift from stocks to bonds as your child approaches college — a sensible default. You can also choose static allocations. When your child is young (10+ years away), a stock-heavy portfolio (80–100% equities) maximizes growth potential. As enrollment approaches, gradually move to safer assets to protect accumulated savings from a market downturn just before you need the money.
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Build a budget →Frequently Asked Questions
What is a 529 plan?
A 529 plan is a tax-advantaged savings account sponsored by a state or educational institution, designed to help families save for future education costs. Contributions grow tax-free and withdrawals for qualified education expenses — including tuition, fees, room and board, books, and supplies — are also federal tax-free. Many states offer an additional state income tax deduction for contributions.
How much does college cost, and how much should I save?
Average annual costs (tuition, fees, room and board) run roughly $28,000 for public in-state schools and $58,000 for private colleges (2024–25). Over four years that is $112,000–$232,000, before accounting for future tuition inflation. A practical starting target: cover at least one-third of projected four-year costs with savings. Use this calculator to find the exact monthly contribution needed based on your timeline and expected return.
What annual return rate should I use?
Most financial planners recommend 5–7% for a diversified stock-heavy portfolio with a 10+ year horizon. For shorter timelines or more conservative portfolios (more bonds), use 3–4%. The calculator defaults to 6% as a reasonable middle ground. Always stress-test with a lower rate (e.g., 4%) to see the impact of lower-than-expected returns.
What happens if I overfund a 529 plan?
If your child receives a scholarship or doesn't use all the funds, you have several options: change the beneficiary to another family member, save funds for graduate school, withdraw up to the scholarship amount penalty-free (taxes on earnings still apply), or — starting in 2024 — roll over up to $35,000 of unused 529 funds into a Roth IRA for the beneficiary after 15 years of account ownership (subject to annual Roth contribution limits).
Does a 529 account affect financial aid?
A 529 owned by a parent is reported as a parental asset on the FAFSA and reduces aid eligibility by at most 5.64% of the account value per year — a relatively small impact. A student-owned 529 is assessed at 20%. Grandparent-owned 529s are not counted as an asset on the FAFSA under current rules, though distributions used for education are also now not counted as student income under the simplified FAFSA introduced in 2024.