College Savings Calculator
Calculate how much to save monthly for college using a 529 plan.
See how starting early and compound growth reduce your monthly savings needed.
Monthly Savings Needed
College savings calculations use the future value of an annuity formula to determine how much you need to save each month:
Monthly Savings = FV × r / [(1+r)^n - 1]
Where:
- FV = Future cost of college (adjusted for tuition inflation)
- r = Monthly investment return rate
- n = Number of months until college
Tuition inflation is factored in:
Future Cost = Current Cost × (1 + inflation rate)^years
Example: Current college cost of $30,000/year (4 years = $120,000), child is 5 years old, 13 years to save, 6% return, 5% tuition inflation:
- Future total cost = $227,568
- Monthly savings needed = $923
- Your contributions = $143,988
- Growth from investment returns = $83,580
Tips:
- Starting early is the single biggest factor — even small amounts at birth grow significantly
- 529 plans offer tax-free growth for education expenses
- Average tuition inflation runs 3-5% per year, higher than general inflation
- Consider in-state public universities to reduce the target amount