529 College Savings Calculator
Enter your child's current age, today's college costs, how much you've already saved, and your planned contributions. The calculator projects the total future cost of college, your expected 529 balance at enrollment, any savings gap, and the extra monthly contribution needed to close it. A year-by-year schedule and growth chart show exactly how the balance builds.
What is a 529 plan?
A 529 plan is a tax-advantaged savings account designed specifically for education expenses. Contributions grow tax-deferred, and qualified withdrawals for tuition, room and board, books, and certain K-12 expenses are completely free of federal income tax. Most states also offer a deduction or credit for contributions made to their state's plan. There is no annual contribution limit set by federal law, though contributions above the annual gift-tax exclusion ($18,000 per person in 2024) may require a gift-tax filing. The account owner retains control and can change the beneficiary to another family member at any time.
How this calculator works
Enter your child's current age and the age you expect them to start college (typically 18). Choose a college type to use a national-average cost estimate, or enter your own. Set your current 529 balance, your planned monthly contribution, the expected annual investment return, and the college cost inflation rate. The calculator projects the total future cost of college by inflating today's annual cost for each college year. It then grows your current balance and future contributions at your expected return to find the projected 529 balance at enrollment. The difference is your savings gap, and if there is a gap it tells you how much more per month you would need to contribute to fully close it.
How college cost inflation affects your savings target
College costs have historically risen faster than general inflation, averaging around 4-5% per year over the past 20 years. If your child is 3 today and starts college at 18, that is 15 years of cost inflation. At a 4% inflation rate, an annual cost of $28,000 today becomes roughly $50,400 by year one of college and $54,500 by year four. Over four years the total projected cost is about $207,000. This is why a small increase in your monthly contribution now, while compound growth still has many years to work, makes a much larger difference than an equivalent increase made later.
529 tax advantages vs. a taxable account
The single biggest advantage of a 529 over a regular taxable brokerage account is that investment earnings are never taxed when used for qualified education expenses. In a taxable account you pay federal capital-gains tax (0%, 15%, or 20% depending on your income) plus any state tax on gains each year and again when you sell. A family in the 22% bracket saving $300 a month for 15 years at a 6% return would accumulate roughly $21,000 more in a 529 than in an equivalent taxable account, purely from the tax savings on growth. If your state offers a deduction on contributions, the advantage is even larger.
2024-25 average total cost of attendance (tuition, fees, room, board)
| College type | Average annual cost | 4-year total (no inflation) |
|---|---|---|
| Public 2-year (community college) | $14,000 | $28,000 |
| Public 4-year in-state | $28,000 | $112,000 |
| Public 4-year out-of-state | $46,000 | $184,000 |
| Private nonprofit 4-year | $61,000 | $244,000 |
Source: College Board Trends in College Pricing 2024. National averages; your state and institution will vary.
Frequently asked questions
What happens to the 529 money if my child does not go to college?
You have several options. You can change the beneficiary to another family member, including a sibling, cousin, or even yourself, for their education expenses. Starting in 2024, the SECURE 2.0 Act allows unused 529 funds to be rolled into a Roth IRA for the beneficiary (up to $35,000 lifetime, subject to annual Roth contribution limits and a 15-year account holding requirement). If you take a non-qualified withdrawal, earnings are subject to ordinary income tax plus a 10% federal penalty, but your original contributions come out tax-free at any time.
Can I use a 529 for K-12 tuition or student loan repayment?
Yes. The Tax Cuts and Jobs Act of 2017 allows up to $10,000 per year per student to be used for K-12 tuition at public, private, or religious schools, federal tax-free. The SECURE Act also allows up to $10,000 (lifetime limit per beneficiary) to be used to repay qualified student loans. Check your state's rules, as some states have not conformed to federal law on these uses and may claw back state tax deductions.
Does a 529 plan affect financial aid?
A 529 owned by a parent has a relatively small impact on federal financial aid. Under the FAFSA, parental assets are assessed at a maximum of 5.64%, compared with 20% for assets held directly in the student's name. A 529 owned by a grandparent used to be treated differently, but under the new FAFSA rules effective for the 2024-25 aid year, grandparent-owned 529 distributions no longer count as student income on the federal form at all.
Which state's 529 plan should I use?
You are not required to use your own state's plan. If your state offers a meaningful tax deduction or credit for contributions (most do), compare that benefit against the investment options and expense ratios of out-of-state plans. States like Utah, Nevada, and New York have highly rated plans with low fees that are popular among out-of-state residents. If your state offers no deduction, you are free to shop purely on investment quality and cost.
How much should I save in a 529 each month?
A common starting rule of thumb is to aim for roughly one-third of projected college costs from savings (one-third from income when the child is in school, and one-third from financial aid or loans). For an in-state public school, that suggests saving about $300-$500 per month starting at birth. This calculator shows you the exact number for your specific situation. The most important factor is starting early: money saved in the first few years benefits from the most compounding time.
What investment options are inside a 529?
Most 529 plans offer age-based portfolios that automatically shift from equities toward fixed income as enrollment approaches, plus individual mutual funds or ETFs for do-it-yourself investors. You may change investments twice per year under federal rules, or at any time when you change the beneficiary. Look for index-fund options with low expense ratios (under 0.20%) to minimize the drag on long-term growth.