College Savings (529) Calculator

1. Enter your current savings and monthly contribution.
2. Enter a realistic expected return and the years until college.
3. Optionally add a tuition target to see whether you are on track.
4. Read your projected balance, the growth and the total you contribute.

Here is what each result means:

A 529 plan is a tax-advantaged account for education costs. You contribute after-tax money, it grows tax free, and withdrawals for qualified education expenses are not taxed. Started early, the tax-free growth can add a large share of the final balance.

This calculator focuses on the growth maths that applies to any college savings, a 529 included. It shows how contributions and compounding build a balance over the years you have, so you can size your monthly savings to a goal.

It grows your starting balance and each monthly contribution at the expected return, compounding monthly.

1. Grow the current balance for the full period.
2. Grow the stream of monthly contributions, each for the time it is invested.
3. Add them for the projected balance; subtract contributions for the growth.

For a general lump sum with no monthly deposits, the future value calculator uses the same idea.

Suppose you start with $2,000, add $300 a month, expect a 6% return, and have 18 years.

Calculation: the monthly rate is 0.5 percent over 216 months. The starting $2,000 grows to about $5,860, and the $300 monthly stream grows to about $116,000, for a projected balance near $122,000. You contribute about $66,800, so roughly $55,000 is tax-advantaged growth.

Monthly savings needed to reach $100,000, at a 6 percent return, by years left.

Starting early is the cheapest way to reach a goal, because compounding does more of the work.

Where you save changes the tax treatment and growth.

For college costs specifically, the tax-free growth of a 529 is hard to beat when you start early.

Time in the Market

The biggest factor. Starting at birth gives compounding many more years than starting in high school.

Contribution Amount

Steady monthly deposits add up and, with growth, form most of the balance.

Return and Fees

A higher return lifts the balance, while high fund fees quietly reduce it.

Setting a Monthly Amount

Size your savings to a tuition goal and the years you have.

Checking Progress

See whether your current plan is on track and adjust early.

Comparing Start Dates

See how much cheaper it is to start now rather than later.

1. Starting Late

Waiting a few years greatly raises the monthly amount needed, because compounding has less time.

2. Assuming Too High a Return

Use a realistic long-run figure. Overstating the return understates what you must save.

3. Ignoring Tuition Inflation

College costs tend to rise, so set your target on future prices, not today.

4. Overlooking Fees

High fund fees erode growth over eighteen years. Favor low-cost options.

5. Over-saving in a 529

Balance college savings with retirement, and mind the rules on non-qualified withdrawals.

The projection is exact for a fixed return, but real returns vary and taxes and inflation add complexity.

It depends on your goal, the years left and the return. To reach $100,000 in eighteen years at 6 percent, about $257 a month from zero does it; with ten years left it rises to about $610, which shows why starting early is cheaper.

For dedicated college savings, usually yes. Contributions grow tax free and qualified withdrawals are untaxed, so over many years the tax-free growth can be a large share of the balance.

Enter your tuition target and the tool shows any gap and roughly how much more per month would close it. Remember to set the target on future, inflated tuition.

Use a realistic long-run figure for your investment mix, often in the 5 to 7 percent range for a stock-heavy plan that shifts to safer assets as college nears. Do not assume the best case.

Extra 529 money used for non-qualified expenses is taxed on the earnings with a penalty, though there are exceptions and new rollover options. Balance college savings with other goals.

Yes. A 529 is usually invested, so its value can fall. Many plans shift to safer holdings as college approaches to reduce that risk.

Yes. College costs tend to rise faster than general inflation, so aim at the future cost, not today, when you set a target.

For long-horizon college savings, the tax-free growth usually beats a taxable savings account. For money needed within a year or two, a high-yield savings account may be safer.

No. The calculation runs entirely in your browser and nothing you enter is stored or sent anywhere, unless you choose Save, which keeps the result only in this browser.

• 529 plan overview (Wikipedia).
• Future value (Investopedia).
• Compound interest explained (Maths Is Fun).