529 College Savings Plan Calculator

A 529 college savings plan is a tax-advantaged investment account designed specifically for education expenses. Contributions grow tax-free and withdrawals for qualified education expenses are also tax-free — making it one of the most powerful education savings tools available in the United States.

Formula: Future Value = PMT × [((1 + r/n)^(n×t) − 1) ÷ (r/n)] × (1 + r/n)

This is the future value of an annuity due (payments at period start).

What each variable means:

• PMT — regular monthly contribution amount
• r — expected annual return rate (529 plans invest in mutual funds; typical assumed return: 5–7% for a balanced portfolio)
• n — compounding periods per year (12 for monthly)
• t — years until the funds are needed

Qualified 529 expenses:

• Tuition and fees
• Room and board (on-campus or off-campus, up to the school’s Cost of Attendance)
• Books, supplies, and required equipment
• Computers and internet service (if required for enrollment)
• K–12 tuition (up to $10,000/year per SECURE 2.0 Act)
• Student loan repayment (up to $10,000 lifetime)
• Apprenticeship programs

2024 average college costs (per year, all-in):

• Public in-state university: $27,000–$30,000
• Public out-of-state: $43,000–$47,000
• Private university: $56,000–$62,000
• Community college: $10,000–$14,000

Worked example: Child is 3 years old. You start contributing $300/month into a 529 with an assumed 6% annual return. College starts in 15 years.

r/n = 0.06 ÷ 12 = 0.005 | n×t = 12 × 15 = 180 periods

FV = 300 × [((1.005)^180 − 1) ÷ 0.005] × 1.005 = 300 × [(2.454 − 1) ÷ 0.005] × 1.005 = 300 × [290.8] × 1.005 = $87,636

Total contributed: 180 × $300 = $54,000 Tax-free growth: $33,636

State tax deductions: Many states offer deductions on contributions (e.g., New York deducts up to $5,000/year for single filers). Check your state’s plan for additional benefits.