Our free 529 plan and college savings calculator will help you see the growth of your college savings investments based on the rate of return you select. If you don't know where to start, check out our 529 plan by age guide.
You can adjust the child's age and monthly contribution, along with the rate of return, to get the estimated total value of your future 529 college savings plan.
529 Plan Calculator
Key Things To Know About This 529 Plan Calculator
This calculator is designed to help you understand how much you need to save for college. But it's important to remember that you likely don't need to save the entire projected total cost of college. The reason is that 85% of first year college students are usually awarded some type of financial aid.
Furthermore, there are a lot of low-price options for college, such as starting at community college (which is free in one-third of states) and then transferring to a local state college. The key is that you likely don't want to over-invest in a 529 plan, because avoiding the 529 plan penalty can be tough.
To use this calculator, start with your child's age.
The enter your current college savings account balance (it could be $0 if you're just getting started).
Then enter an estimated monthly contribution. Note: 38% of 529 plans now have automatic contributions enabled. If you don't have a set amount, just estimate your yearly contribution by month. For example, if you're putting in $1,200 per year, that's $100 per month.
Finally, estimate the rate of return you expect. We use a conservative 7%, which is taking into consideration the average S&P 500 performance, and subtracting out fees and expenses. You may earn more, but you could earn less. We encourage you to be conservative, especially if you're using a "Target Date" 529 plan fund. These funds may return less since they adjust to safer investments as your child ages.
Related: Best 529 Plans Based On Performance
How Much Should You Save For College
Our 529 Plan By Age guide breaks down how much you should save for college - but the key is you probably want to have anywhere between $37,000 and $245,000 saved for college. That's a huge range, but it reflects the reality of both the cost of college and the ability of families to save for college.
On the low end $37,000 should be able to fully pay for a 4-year degree at low-priced options like community colleges and in-state schools.
On the high end, $245,000 should be able to cover the cost of a 4-year degree at most high-cost private schools assuming you are paying the full sticker price.
However, we know that most families will need to pay somewhere in-between. And simply having any money saved for college is a great way to offset the need for student loans.
So use this calculator to help you understand how small investments over time can seriously grow to be a nice nest egg for college.
Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.