Phase 9 · Family & Protection
529 College Savings Calculator
Tuition compounds against you at ~5% a year. Project your 529 against tomorrow's real cost, see the share you're on track to cover, and the monthly number that closes the gap.
How much should I save in a 529 for college?
Project both sides, because tuition inflates faster than general prices. Savings grow as balance × (1 + r)n + monthly × annuity factor, while cost grows as today's cost × (1 + college inflation)years. Coverage is the ratio — and at typical 5% college inflation, today's sticker price badly understates the target.
- Worked example (defaults on this page): a $110,000 four-year cost today becomes $207,421 in 13 years at 5% college inflation.
- $5,000 growing at 6% plus $300/month reaches $81,299 — covering 39.2% of that projected cost.
- Fully funding it would take $836/month instead of $300. Knowing the gap early is what makes it closable.
- Partial funding is a legitimate plan. A 529 covering 40% still removes most of the loan burden, and over-funding one carries its own penalty risk if the money is never used for education.
Your 529 vs the rising cost of college
Under the hood
The math, fully exposed
We compound your savings monthly and inflate the cost separately — the two rates race:
Projected savings = balance × (1+r)n + monthly × annuity factor at r
Projected cost = today's cost × (1 + college inflation)years
Coverage = projected savings ÷ projected cost
Monthly to fully fund = (projected cost − grown balance) ÷ annuity factor
- Two rates, opposite directions: your return grows the savings while college inflation grows the target — coverage is the tug-of-war between them.
- Time is the lever: a longer runway lets compounding win the race; starting late forces a much higher monthly number.
- Partial funding still wins: every tax-free dollar here is a dollar you don't borrow at student-loan rates later.
Your directives
What to do next, based on your numbers
Adjust the sliders to generate tailored recommendations.
Answers
Frequently asked questions
What is a 529 plan and why use one?
A 529 is a tax-advantaged account for education. You contribute after-tax dollars, the money grows completely tax-free, and withdrawals for qualified education expenses are never taxed — the same triple-tax-free structure as an HSA, aimed at school. Many states also offer a tax deduction or credit on contributions. Left invested for a decade or more, the tax-free growth is what makes it beat a regular brokerage account for college.
Why does college cost grow faster than normal inflation?
Tuition has historically risen around 5% a year — well above the ~3% general inflation rate — driven by reduced public funding, administrative growth, and inelastic demand. That gap is the whole challenge: your savings must out-compound a cost that is itself sprinting. This tool lets you set the college-inflation rate separately from your investment return so you can see the race honestly.
What if my 529 does not cover the full cost?
Most families do not fully fund college from a 529, and that is fine — it is one piece. The rest comes from current income during the college years, scholarships and grants, student contributions, and federal aid or loans. Covering even half from tax-free savings dramatically cuts what you borrow. The tool shows the monthly contribution that would fully fund it, so you can decide how close you want to get.
What if my child does not go to college, or I over-save?
You have options. A 529 can be transferred to another beneficiary (a sibling, yourself, even a future grandchild), used for trade schools, apprenticeships, or up to $10,000 of K-12 tuition, and recent rules allow rolling unused funds into a Roth IRA for the beneficiary within limits. Non-qualified withdrawals owe tax plus a 10% penalty on the gains only. This is an educational model, not financial advice.