Our simple College Saving Calculator will estimate how much money you need to save each month to help meet your college tuition goals for your children. After inputting your information, the calculator will give you a brief written summary of your results and generate a chart to illustrate the value of compound interest.

Your Calculator Inputs

We only require five fields:

1. Current Total College Savings: What money have you already set aside for college funding?
2. Child's Current Age: What is your child's current age? (between 0 and 30)
3. Annual College Cost: What is your estimate of their annual costs?
   • See How to Estimate Annual College Expenses.
4. Years Attending College: How many years of higher education do you intend to fund?
5. Federal Tax Bracket: Indicate the percentage (between 0% and 75%) of federal taxes you currently or expect to pay when your child attends college.

Press 'Calculate' to estimate college savings.

Advanced Inputs

Providing more information or adjusting default assumptions enables you to personalize your outcomes.

• Annual College Cost of Inflation: The yearly inflation rate (0% to 10%) to use for future college cost estimates? (default is 4%)
  • According to the College Board, between 2014-15 and 2024-25, the average tuition, fees, housing, and food prices at public four-year institutions declined by 1% and increased by 4% at private nonprofit four-year institutions, after adjusting for inflation.¹ According to the U.S. Bureau of Labor Statistics, the U.S. inflation rate for 2024 was 2.9% annually.²
• Before-Tax Return: The annual percentage rate of return (-10% to 10%) you expect to earn on your college savings investment before paying taxes. (default is 6%)
  • According to data from Savingforcollege.com, as of December 2024, the top-10 performing direct-sold 529 plans over a ten-year period achieved average annual returns ranging from approximately 6.08% to 7.00%. For your state, check the rankings.³
• Annual Contribution Increases: Annual percentage (0% to 20%) increase to your yearly college savings contributions.

Understanding Your Results

Our College Savings Calculator analysis estimates the total amount needed and the required monthly savings to achieve that amount based on your inputs. The chart indicates your accumulated savings and college need over time.

Steps To Interpret Your Results

Interpreting your results from our college savings calculator allows you to translate those numbers into actionable steps for your savings goals. Here's a breakdown of how to analyze and understand the information:

1. Review Your Inputs: Know how each input (current savings, child's age, annual cost, years attending, tax bracket) and advanced (inflation, return, contribution increases) affects the results. A higher tax bracket increases the needed savings.
2. Check "Total Amount Needed": Based on your research, is this projected total cost realistic? If not, revisit your "Annual College Cost" input.
3. Assess "Required Monthly Savings": Can you realistically save this amount each month? If not, consider:
   • Reducing the estimated college cost (college choice).
   • Increasing your savings (initial and additional).
   • Cautiously adjusting investment return assumptions (with professional advice).
   • Factoring in other funding sources (scholarships, etc.).
   • Saving as much as possible, even if it's less than the recommendation.
4. Analyze the Chart: Do savings meet or exceed the projected need over time? If not, you need to adjust your plan.
5. Understand Input Interplay: Inflation increases need; returns and contribution increases reduce need. Be realistic.
6. Acknowledge Limitations: The calculator makes assumptions (rate of return, inflation) and doesn't fully account for tax-advantaged savings.
7. Don't Rely Solely on the Calculator: Use it as a starting point, do further research, and consult a financial advisor.

By following these steps, you’ll understand how your money could grow and what factors influence your investment results over time. With the costs of college tuition, it’s important to start saving as early as possible.

How To Estimate Annual College Expenses

You must first estimate your child’s annual college expenses to develop an effective college savings strategy. College expenses can be broken down into these main categories:

Direct Costs (Billed by the College):

• Tuition and Fees: This is the big one, and it varies dramatically depending on the type of college (public vs. private, in-state vs. out-of-state). Fees can include things like student activity fees, technology fees, and health services fees.

Tip: Look at the college's website for the academic year's specific tuition and fee breakdown. Don't rely on general averages.

• Room and Board: This covers the cost of on-campus housing and a meal plan. The costs vary depending on the type of housing (dorm, apartment-style) and the meal plan chosen.

Tip: If your student plans to live off-campus, you'll need to research average rent and food costs in the college's location (more on that later).

• Books and Supplies: Textbooks, lab materials, art supplies, and other required course materials can add up quickly.

Tip: Renting textbooks may be much cheaper than purchasing them.

Indirect Costs (Not Billed by the College, But Still Essential):

• Personal Expenses: This broad category includes everything from toiletries and laundry detergent to clothing, entertainment, and social activities.

Tip: This is where a realistic budget is crucial. Talk to current students or recent graduates to get a sense of typical spending habits.

• Transportation: This includes travel to and from campus (flights, train tickets, gas), and transportation around campus and the local area (bus fares, car insurance, gas, parking).

Tip: Consider whether your student will need a car on campus. Parking can be expensive, and many campuses are walkable or have good public transportation.

• Health Insurance: Most colleges require students to have health insurance. If your student isn't covered under your family plan, they may need to purchase a student health insurance plan through the college or an independent provider.
• Loan Fees: If you are taking loans, factor those into your cost of attendance.

The "Hidden" Costs: Things You Might Forget

These are the sneaky expenses that often get overlooked, but they can significantly impact your budget:

• Orientation and Welcome Week Activities: Some colleges charge fees for these events.
• Technology: A laptop, software, and other tech essentials are often necessary for college coursework.
• Club and Organization Dues: Membership fees are often involved in joining clubs, fraternities, sororities, or other student organizations.
• Study Abroad Expenses: If your student plans to study abroad, consider the additional costs (travel, program fees, living expenses).
• Summer Storage: There may be storage fees if your student lives on campus and needs to store belongings over the summer.
• Unexpected Medical Expenses: Even with health insurance, there may be co-pays, deductibles, or other out-of-pocket medical expenses.

Student Budget Estimates

The following price chart from the 2024 College Board's Trends in College Pricing Report provides average costs to begin estimating your annual college expenses:

College Board's Trends in College Pricing Report. Figure CP-1: Average Estimated Full-Time Undergraduate Budgets (Enrollment-Weighted) by Sector, 2024-25

Benefits of Using a College Savings Calculator

A college savings calculator is a valuable tool that provides clarity, promotes proactive planning, reduces financial stress, and helps empower families to take control of their college savings journey. Summary of the benefits:

• Clarity: Demystifies college costs and provides personalized estimates.
• Goal Setting: Sets realistic savings targets and motivates consistent saving.
• Proactive Planning: Acts as an early warning system, reducing financial anxiety.
• Financial Literacy: Improves understanding of compound interest, inflation, and savings options.
• Family Communication: Facilitates discussions about college costs and shared responsibility.
• Flexibility: Allows for "what if" scenarios and regular adjustments to your plan.

How Much Do You Need To Save for College?

The answer to this question depends on several factors, including the number of children you have, how much you plan to fund their higher education costs, and ultimately where they decide to enroll for college.

The more children you have, the more you may need to save. Having a solid college savings plan can be helpful.

You may decide not to fund 100% of your child’s college education. You may want your child to assume part of this financial responsibility by getting a job or an education loan to help pay for college. There are alternatives to student loans to consider as well, including grants, scholarships and work-study programs.

Comparing Different College Savings Accounts

Multiple paths exist to finance your child’s education, each with pros and cons.

1. 529 Plans*
   • Pros: Tax-deferred growth, potentially tax-free withdrawals for qualified education expenses, high contribution limits.
   • Cons: Limited investment choices in some states, penalties if funds aren’t used for education.
2. Coverdell Education Savings Accounts (ESA)*
   • Pros: Tax-free growth, can be used for K-12 and college expenses.
   • Cons: Lower contribution limits, income restrictions apply.
3. UGMA/UTMA Custodial Accounts*
   • Pros: Flexibility in how the funds can be used (not just for college).
   • Cons: Assets technically belong to the minor, which can impact financial aid eligibility.

Below is a quick snapshot comparison of these vehicles:

It's important to remember that a college savings calculator is a tool. It's best to use it as a starting point and adjust your plan as needed, ideally with the help of a financial advisor.

* Also note that investments in securities products come with market risk, including the potential to lose some or all of the principal amount invested.

Source

1. Trends in College Pricing - College Board. https://research.collegeboard.org/trends/college-pricing
2. Economic News Releases - U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/archives/cpi_01152025.pdf
3. Q4 2024 529 Performance Rankings: Ten-Year - Saving For College. https://www.savingforcollege.com/529-plans/performance-rankings/ten-year