How to use this calculator
Enter your child's current age, the type of college you are planning for (public in state, public out of state, or private), and any savings you have already set aside. The calculator projects future college costs using historical tuition inflation rates, then works backward to determine how much you need to save each month.
You can adjust the expected investment return rate and the tuition inflation rate to see how different assumptions affect your savings target. The default values represent historical averages, but you may want to test conservative scenarios to build in a safety margin. The results include a year by year savings timeline showing how your balance grows over time.
The output shows the projected total cost of four years of college at enrollment, the monthly savings amount needed to cover that cost, and a breakdown of how much comes from your contributions versus investment growth. Use this information to set up automatic contributions to a 529 plan or other savings vehicle.
How much does college cost?
College costs vary dramatically depending on the type of institution. For the 2024 to 2025 school year, the average annual cost (tuition, fees, room and board) is roughly $23,000 for public in-state universities, $41,000 for public out-of-state, and $54,000 for private colleges.
The bigger challenge is inflation. College costs have historically risen about 5% per year, roughly double the rate of general inflation. That means a newborn today could face college costs that are 2 to 3 times what they are now. This is why starting early matters so much: every year of compound growth helps offset the rising price tag.
| College Type | Annual Cost | 4-Year Total |
|---|---|---|
| Public In-State | $23,000 | $92,000 |
| Public Out-of-State | $41,000 | $164,000 |
| Private | $54,000 | $216,000 |
Figures are approximate averages for 2024 to 2025 and include tuition, fees, room, and board.
529 plans explained
A 529 plan is the most popular way to save for college, and for good reason. Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses like tuition, room and board, books, and even up to $10,000/year for K to 12 tuition.
- Tax-free growth: Unlike a regular brokerage account, you pay no capital gains tax on investment earnings when used for education.
- State tax benefits: Over 30 states offer tax deductions or credits for 529 contributions. Check your state's plan, the savings can be significant.
- Flexibility: Funds can be used at any accredited college or university nationwide. You can also change the beneficiary to another family member if plans change.
- Roth IRA rollover: As of 2024, unused 529 funds can be rolled into a Roth IRA for the beneficiary (up to $35,000 lifetime, subject to annual contribution limits and a 15-year account age requirement).
- High contribution limits: Most states allow total 529 balances of $300,000 to $500,000+ per beneficiary, far more than most families will need.
Frequently asked questions
How much does 4 years of college cost?
At today's prices, a four-year degree costs roughly $92,000 for public in-state, $164,000 for public out-of-state, and $216,000 for private colleges (tuition, fees, room and board). With college costs rising about 5% per year, a child born today could face significantly higher totals by the time they enroll.
What is a 529 plan and how does it work?
A 529 plan is a tax-advantaged savings account designed for education expenses. Contributions grow tax-free, and withdrawals are tax-free when used for qualified expenses like tuition, room and board, and books. Most states offer their own plans, and many provide state tax deductions for contributions.
How much should I save per month for college?
It depends on your child's age, the type of college, and how much you've already saved. Saving $300 to $500 per month starting at birth can cover most of a public in-state education. Starting at age 10 for the same goal might require $800 to $1,200 per month. Use the calculator above to get your personalized number.
What happens to 529 money if my child doesn't go to college?
You can transfer the account to another family member, use it for trade school or vocational programs, keep it for graduate school, or roll up to $35,000 into a Roth IRA for the beneficiary (as of 2024 rules). You can also withdraw the money, but you'll owe income tax and a 10% penalty on the earnings portion only.