Estimate how much your college savings could grow by the time your child starts school, and compare it with projected college costs.
Planning for college costs
College costs have historically risen faster than general inflation, so today's price is not what you will pay. This calculator projects both sides: how your savings could grow, and what college might cost when your child enrolls.
How it works
Savings at enrollment = P(1 + r)n + C × ((1 + r)n − 1) ÷ r
Future cost = Cost today × (1 + college inflation)years
Worked example
Your child is 5 and will start college at 18. You have $5,000 saved and add $250 a month, earning 6% a year. After 13 years you could have about $69,700, of which $44,000 is your own contributions.
If four years of college costs $100,000 today and prices rise 4% a year, the bill would be about $166,500 in 13 years, so these savings would cover roughly 42%. Scholarships, grants, student work and current income usually fill part of the gap.
Ways to save for college
- 529 plans: tax-advantaged accounts for education. Earnings grow tax-free when used for qualified education costs, and many states offer a tax deduction for contributions.
- Custodial accounts (UTMA/UGMA): flexible but count more heavily in financial aid formulas.
- Regular savings or brokerage accounts: flexible, without the education tax benefits.
Rules change and vary by state, so check current 529 details for your state.
Frequently asked questions
Should I save for college or retirement first?
Most planners say retirement first: students can borrow for college, but you cannot borrow for retirement.
Do I need to cover 100%?
No. Many families aim to cover a share, such as one-third, from savings, with the rest from income, aid and scholarships.
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Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.