How much should I save monthly for college?

Work backward from a coverage goal. Fully funding four inflated years of a $25,000-a-year school for a 5-year-old takes roughly $800 to $850 a month at a 6 percent return, which is why many families target a third to two thirds of the cost and plan the rest from income and aid. Run your own school cost and horizon above.

What does a 529 plan actually do?

It is an investment account for education: contributions grow tax-deferred and withdrawals are federal-tax-free when spent on qualified education costs like tuition, fees, room and board, and books. Over 30 states add a state tax deduction or credit for contributions. Non-qualified withdrawals owe tax plus a 10 percent penalty on earnings.

Why does the calculator inflate college costs separately?

Because college costs have historically risen faster than general inflation, a savings plan that ignores that quietly falls behind. A $25,000 annual cost today at 5 percent inflation is about $47,000 by the time a 5-year-old starts college. The inflation rate is editable, so you can test gentler or harsher assumptions.

What happens to 529 money my child does not use?

You have options: change the beneficiary to another family member, hold it for graduate school, use up to $10,000 for student loan repayment, or, since 2024, roll up to $35,000 lifetime into the beneficiary's Roth IRA (subject to a 15-year account age rule and annual IRA limits, per SECURE 2.0). Only the non-qualified route triggers the penalty.

Is a 529 better than a savings account for college?

For education money on a multi-year horizon, usually yes: the growth escapes federal tax entirely when spent on qualified costs, and possibly state tax too. A savings account wins only for very short horizons where market risk matters more than the tax break. Some families use both, cash for the near years and the 529 for the far ones.

529 College Savings Calculator

Project a 529 balance against the future cost of college: tuition inflation, coverage percent, the shortfall, and the monthly contribution that would fund it.

Child's age

years

College start age

years

Current 529 balance

Monthly contribution

Expected annual return

Annual college cost today

College cost inflation

Years of college

years

X f in

Projected 529 balance at college start

$80,490.00

Projected cost of college: $203,184.59
Coverage: 39.61%
Shortfall at college start: $122,694.59
Surplus above the projected cost: No surplus at these inputs
Monthly contribution for full coverage: $827.15
Total contributed: $51,800.00
Tax-free growth: $28,690.00

529 balance by year

Quick answer: With the example inputs this page loads by default, the headline result (Projected 529 balance at college start) comes to $80,490.00. Project a 529 balance against the future cost of college: tuition inflation, coverage percent, the shortfall, and the monthly contribution that would fund it. Change any input above and every figure updates instantly in your browser.

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Fact-check: results on this page are verified against an independently coded reference oracle that covers all 106 calculators on this site. See how we verify .

A 529 plan grows tax-free for education, but the target it chases grows too: college costs have historically risen faster than general inflation. This calculator projects your 529 balance to your child's college start date, inflates today's annual cost to each college year, and shows the coverage percent, the shortfall, and the monthly contribution that would close it.

What this result means

Coverage percent is the honest scoreboard: 100 percent means the projected balance pays the whole inflated bill, and most families deliberately target less, planning to cover the rest from current income, scholarships, or loans. A third to two thirds covered is a common goal. The shortfall figure turns the gap into today's decision via the monthly-for-full-coverage line; starting earlier shrinks that number faster than any return assumption. Costs vary enormously by school type, so set today's cost to the schools you actually have in mind. This is an estimate, not advice.

Assumptions

Contributions are made at the end of each month and compound at the exact monthly rate that reproduces your annual return; the balance is measured at college start, and money is assumed spent then rather than continuing to grow through the college years (a deliberately conservative simplification).
The projected cost inflates today's annual cost at your tuition inflation rate to each college year and sums them. College cost inflation has historically run above general inflation, which is why it is a separate, editable assumption; College Board's Trends in College Pricing publishes current averages by school type.
Growth and qualified withdrawals are modeled as untaxed, per 529 rules. Non-qualified withdrawals owe income tax plus a 10 percent penalty on earnings and are not modeled. State income tax deductions or credits for contributions, which more than 30 states offer, are also not counted here.
The monthly-for-full-coverage figure solves for the level monthly contribution whose future value, plus the growth of your current balance, exactly meets the projected cost at college start.
Financial aid, scholarships, grants, and the effect of 529 assets on aid formulas are not modeled. Returns are a constant assumption; age-based portfolios change allocation over time and real returns vary year to year.
This is an estimate for educational purposes only, not investment, tax, or financial aid advice.

Key terms

Definitions for the terms this calculator uses, in our finance glossary .

How it works

The calculator races two curves against each other.

Your savings. Monthly contributions compound at the exact monthly rate that reproduces your annual return, (1 + annual)^(1/12) - 1, on top of the current balance, measured at college start. Money is treated as spent at that point rather than growing through the college years, a deliberately conservative simplification.

The bill. Today’s annual cost inflates at the tuition inflation rate to each college year: cost x (1 + inflation)^(years until that college year), summed across the years of college. College cost inflation has historically outrun general inflation, which is why it is its own editable assumption; College Board’s Trends in College Pricing publishes current averages by school type.

Coverage percent is savings over bill. The full-coverage line solves the annuity backward: the level monthly contribution whose future value, plus the growth of the current balance, exactly meets the projected cost.

Worked example

A 5-year-old starting college at 18 (13 years), $5,000 saved, $300 a month, 6 percent return, $25,000 annual cost today, 5 percent tuition inflation, 4 years of college.

Savings: $5,000 x 1.06^13 ($10,664.64) plus the $300 monthly annuity ($69,825.36) = $80,490 at college start.
Bill: $25,000 inflated 13 to 16 years = $47,141 + $49,498 + $51,973 + $54,572 = $203,184.59.
Coverage: 39.61 percent, a shortfall of $122,694.59. Fully funding the bill would take about $827 a month from today.

Scope and limitations

Constant return and inflation assumptions; end-of-month contributions; no growth during the college years; no financial aid, scholarships, or aid-formula effects; no state tax deductions for contributions (over 30 states offer one); federal tax-free treatment assumed for qualified withdrawals only. This is an estimate for education, not investment, tax, or financial aid advice.

Sources

Frequently asked questions

How much should I save monthly for college?: Work backward from a coverage goal. Fully funding four inflated years of a $25,000-a-year school for a 5-year-old takes roughly $800 to $850 a month at a 6 percent return, which is why many families target a third to two thirds of the cost and plan the rest from income and aid. Run your own school cost and horizon above.
What does a 529 plan actually do?: It is an investment account for education: contributions grow tax-deferred and withdrawals are federal-tax-free when spent on qualified education costs like tuition, fees, room and board, and books. Over 30 states add a state tax deduction or credit for contributions. Non-qualified withdrawals owe tax plus a 10 percent penalty on earnings.
Why does the calculator inflate college costs separately?: Because college costs have historically risen faster than general inflation, a savings plan that ignores that quietly falls behind. A $25,000 annual cost today at 5 percent inflation is about $47,000 by the time a 5-year-old starts college. The inflation rate is editable, so you can test gentler or harsher assumptions.
What happens to 529 money my child does not use?: You have options: change the beneficiary to another family member, hold it for graduate school, use up to $10,000 for student loan repayment, or, since 2024, roll up to $35,000 lifetime into the beneficiary's Roth IRA (subject to a 15-year account age rule and annual IRA limits, per SECURE 2.0). Only the non-qualified route triggers the penalty.
Is a 529 better than a savings account for college?: For education money on a multi-year horizon, usually yes: the growth escapes federal tax entirely when spent on qualified costs, and possibly state tax too. A savings account wins only for very short horizons where market risk matters more than the tax break. Some families use both, cash for the near years and the 529 for the far ones.

Related calculators

Learn how this works

New to this topic? Our companion guide explains it in plain language: How Much Should You Save for College? The 529 Math by Starting Age

By Sam Sage Last reviewed July 2026.