How much should I save each month in a 529 plan?

It depends on your child's current age, how much college will cost, and your investment return. As a rough guide: saving $250/month from birth at 6% return yields around $97,000 at age 18 — enough for most in-state public schools. For private college (~$300k+ in 18 years), plan closer to $700–$1,000/month. Use the calculator to back-solve the exact monthly contribution needed.

What tuition inflation rate should I use?

Historically, college tuition has risen about 5% per year — faster than general inflation (~3%). Public 4-year tuition has averaged 4.5% annual growth over the past 20 years, and private 4-year about 3.8% (College Board). Using 5% builds in a safety margin and makes the plan more conservative.

What expected return should I assume on a 529?

Age-based 529 portfolios typically return 5–7% annually (long-term equity/bond mix). A 100% equity portfolio averages ~7–8% historically but is volatile near enrollment. Conservative planning uses 6%; aggressive uses 7%. As your child approaches college age, most 529 glide paths automatically shift toward bonds, lowering both risk and expected return.

What if I have a shortfall in my 529 plan?

You have several options: (1) increase monthly contributions, (2) extend the savings period, (3) plan for the child to attend in-state public college, (4) apply for scholarships and aid, or (5) take federal student loans for the gap. The calculator shows exact shortfall dollars so you can size the adjustment. Many families combine a 529 with current income and modest loans.

Does a 529 plan grow tax-free?

Yes. Contributions are made with after-tax dollars (no federal deduction), but investment growth is not taxed, and withdrawals for qualified education expenses — tuition, fees, room and board, books, and even K-12 tuition up to $10k/year — are federal-tax-free. Many states also offer an income-tax deduction or credit for contributions.

529 College Savings Calculator

A 529 plan is one of the most powerful tools for college savings because contributions grow tax-free and withdrawals for qualified education expenses are also tax-free. This 529 College Savings Calculator combines three projections into a single view: (1) it inflates today's published college cost at a chosen tuition inflation rate to find the true future sticker price at enrollment, (2) it projects your current 529 balance plus ongoing monthly contributions to the start of college using the future-value annuity formula, and (3) it reconciles the two to show your surplus or shortfall — and the exact monthly contribution required to fully fund college. Use it to test how starting earlier, increasing monthly contributions, or assuming a more aggressive return impacts your plan.

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calendar_today Updated: April 2026

auto_awesome AI Insights AI

New

savings Your 529 Plan Inputs

Child's Age

yrs

Years Until College

yrs

Current 529 Balance

Monthly Contribution

Expected Annual Return

College Cost Today (per year)

Tuition Inflation

Years in College

yrs

analytics Your 529 Projection

Future College Cost (total)

$291,064

4-year total at enrollment (5% inflation × 15 yrs)

529 Value at Start of College $106,697

Funding Gap $184,367

Monthly needed to fully fund $818

Total Contributions

$62,000

Tax-Free Growth

$44,697

Status

Shortfall — increase monthly contribution or start earlier

Input Values

Child's Current Age

yrs

Years Until College

yrs

Current 529 Balance

Monthly Contribution

Expected Annual Return

College Cost Today (per year)

College Cost Inflation

tips_and_updates Tips

• Start the 529 as early as possible — a child age 1 vs age 10 halves the required monthly contribution thanks to compound growth.
• Tuition inflation has historically run 4–6% per year, outpacing general CPI — budget for 5% to be safe.
• Grandparents can contribute directly to a 529 without affecting FAFSA financial aid eligibility under new rules.
• Most states offer a state income tax deduction for 529 contributions — check your state's specific cap.
• If college turns out cheaper than projected, up to $35,000 of unused 529 funds can now be rolled to a Roth IRA.

How to Use This Calculator

child_care

Enter Child's Age

Input current age and years until college starts (typically 18 − age).

account_balance

Enter Current Balance

Add your existing 529 balance and monthly contribution amount.

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Set Growth Assumptions

Expected return 5–7% and tuition inflation 4–6% are typical.

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Review Gap & Required Contribution

See the shortfall and exact monthly contribution needed to fully fund college.

The Formula

First, today's total college cost is inflated forward by compound tuition inflation to get the future sticker price. Then, the current 529 balance compounds monthly at the expected return, plus monthly contributions are added as a future-value annuity. The difference between cost and plan value is the funding gap. Solving the FV annuity for PMT gives the required monthly contribution to close the gap exactly.

FV Cost = C × (1 + i)^n  |  FV Plan = PV × (1 + r/12)^(12n) + PMT × ((1 + r/12)^(12n) − 1) / (r/12)  |  Gap = FV Cost − FV Plan

lightbulb Variables Explained

C College cost today (annual × years)
i Annual college cost inflation rate
n Years until college starts
PV Current 529 balance
PMT Monthly contribution
r Annual expected investment return

tips_and_updates Pro Tips

Start the 529 as early as possible — a child age 1 vs age 10 halves the required monthly contribution thanks to compound growth.

Tuition inflation has historically run 4–6% per year, outpacing general CPI — budget for 5% to be safe.

Grandparents can contribute directly to a 529 without affecting FAFSA financial aid eligibility under new rules.

Most states offer a state income tax deduction for 529 contributions — check your state's specific cap.

If college turns out cheaper than projected, up to $35,000 of unused 529 funds can now be rolled to a Roth IRA.

Frequently Asked Questions

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