College costs have historically risen faster than general inflation (often 3–5% a year). 529 plans grow tax-free and withdrawals for qualified education expenses are tax-free; up to $10,000 a year can go to K-12 tuition (raised to $20,000 from 2026), and unused funds can roll into a Roth IRA (lifetime cap $35,000).
How to use the 529 Plan Calculator
- Child’s current age
- Age when college starts
- Years in college
- Current annual cost of college
- College cost inflation
- Current 529 savings
- Your yearly contribution
- Expected annual return
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the child’s age, the age they start college, years in school, current annual cost, cost inflation, current savings, planned yearly contribution and expected return.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
Inputs explained
| Field | What to enter |
|---|---|
| Child’s current age | A number |
| Age when college starts | A number |
| Years in college | A number |
| Current annual cost of college | Amount in your currency |
| College cost inflation | In % |
| Current 529 savings | Amount in your currency |
| Your yearly contribution | Amount in your currency |
| Expected annual return | In % |
What each result means
- Years until college = max([Age when college starts] – [Child’s current age], 0)
- Cost of the first year of college = [Current annual cost of college]×(1 + [College cost inflation]÷100)^[Years until college]
- Savings when college starts = fvc([Expected annual return]÷100, [Years until college], [Current 529 savings], [Your yearly contribution])
- Shortfall (−) or surplus (+) = [Savings when college starts] – [Total cost of college]
- Equivalent monthly contribution = [Yearly contribution needed to cover the cost]÷12
Example values
How the main result changes when Child’s current age changes and everything else stays at the example values above:
| Child’s current age | Yearly contribution needed to cover the cost |
|---|---|
| 1.5 | 8,551.95 |
| 2.25 | 8,928.9 |
| 3 | 9,342.1 |
| 3.75 | 9,797.31 |
| 4.5 | 10,301.53 |
| 6 | 11,493.86 |
Formula
Total cost = annual cost × (1 + inflation)^years until college, summed over the years in schoolSavings at college = initial × (1 + r)^n + yearly contribution × ((1 + r)^n − 1) ÷ rRequired contribution = (total cost − initial × (1 + r)^n) × r ÷ ((1 + r)^n − 1)Worked example
Inputs — Child's current age: 3; Age when college starts: 18; Years in college: 4; Current annual cost of college: $30,000; College cost inflation: 4 %; Current 529 savings: $5,000; Your yearly contribution: $3,000; Expected annual return: 6 %.
Results — Years until college = 15; Cost of the first year of college = $54,028.31; Total cost of college = $229,429.25; Savings when college starts = $81,810.70; Shortfall (−) or surplus (+) = $-147,618.55; Yearly contribution needed to cover the cost = $9,342.10; Equivalent monthly contribution = $778.51.
Frequently asked questions
How much should I save in a 529?
Enough to cover your share of expected costs – many families aim for one-third of the total.
What can 529 money be used for?
Tuition, fees, books, room and board, K-12 tuition and some apprenticeships and student loans.
What happens if my child doesn't go to college?
Change the beneficiary, roll up to $35,000 into the child's Roth IRA, or withdraw with tax and a 10% penalty on earnings.
What formula does the 529 Plan Calculator use?
Total cost = annual cost × (1 + inflation)^years until college, summed over the years in school.