College Savings Calculator

No. Every figure here is a projection built on assumptions you control: a steady annual return, a fixed education-inflation rate, and contributions that never pause. Real markets move unevenly, tuition rises in fits and starts, and your circumstances change. Treat the projected balance, the coverage percentage, and any shortfall as a planning guide, not a promise. Revisit the numbers each year and adjust your saving as the picture sharpens.

Education inflation is the pace at which college costs climb, usually faster than everyday prices. It captures tuition, housing, and fees together. The calculator defaults to 5% a year, a common long-run assumption, but you can raise or lower it. Public and private schools differ, and recent years have varied, so check figures for the specific institutions you have in mind. A higher rate lifts every future bill and widens any gap.

Because a bill years away is paid in future dollars. Today four years might total $134,000, but at 5% education inflation each year's cost compounds from the child's current age right through college, pushing the projected total to $285,880.71 in our default example. The first year alone reaches $66,327.71 at age 18. Time and compounding inflation, not a pricier school, drive most of the difference you see.

In two stages. During accumulation it grows your current savings plus each monthly contribution at the net annual return, compounded monthly, sweeping any tax on interest once a year. When college starts, contributions stop and the balance keeps earning; at the start of every college year it pays that year's inflated bill, capped at whatever is left. In the default plan $10,000 and $400 a month reach $128,037.14 by age 18.

Because the money does not stop working when classes begin. The balance keeps earning through all four college years, so returns during that stretch help pay later bills. A fund worth less than the projected total at the first tuition due date can still cover every bill if its growth fills the gap. In the default plan the fund pays $131,843.25 of tuition, more than its $128,037.14 starting balance. This in-college growth is easy to overlook.

It is the share of the nominal projected college cost your fund actually pays: tuition covered divided by the full inflated bill, never a discounted or reduced goal. In the default scenario the fund pays $131,843.25 of a $285,880.71 total, so it is 46% funded. Values above 100% mean money is left over after the final bill. It answers one question: how much of the real cost will your savings meet?

The gap, or shortfall, is tuition your fund never manages to pay: bills that arrive after the balance has emptied. In the default plan that is about $154,037 across the four years. A surplus is the opposite, money still in the account after the last bill is settled. One tells you how much more to save or borrow; the other tells you the plan has room to spare.

The calculator searches for the single monthly contribution that leaves the plan exactly fully funded, covering the last bill with nothing left short and nothing wasted. Keeping your other inputs fixed, it tests amounts until coverage lands at 100%. In the default plan that figure is about $906.77 a month, against the $400 entered. It is the cleanest measure of how far today's saving falls from the target.

With little or no time left to accumulate, monthly contributions barely compound, so the outcome leans almost entirely on what you have already saved. If college begins immediately and current savings cannot meet the first bills, there may be no monthly amount that fully funds the plan; the required-savings search reports it as infeasible. In that case the realistic levers are a lower-cost school, financial aid, or borrowing rather than saving alone.

Yes, if you expect to pay them. The annual cost combines tuition, room and board, and books and supplies: $20,000, $12,000, and $1,500 in the default, or $33,500 a year today. Living costs and materials often rival tuition, and leaving them out understates the bill you are planning for. If scholarships, family housing, or a commuter arrangement will cover some of these, lower the figures to match your situation.

The calculator can sweep tax from your interest once a year, which suits a taxable brokerage account. Set the rate to zero for a tax-advantaged education account, where qualified growth is generally untaxed. A 529 plan is one such account, designed to let college savings grow and be withdrawn for eligible costs without the usual tax drag; Coverdell accounts work similarly. Rules and limits vary, so confirm the specifics with a professional.

Fees show up as an expense-ratio drag that trims your annual return before anything compounds. Even a small ratio quietly lowers the net rate the fund earns each month, and over fourteen years of accumulation plus four more of college growth that reduction compounds into a meaningfully smaller balance. The default plan assumes no fee; entering a realistic expense ratio for your funds will pull the projected balance and coverage down.

Choose a rate that reflects how the money is actually invested. A portfolio heavy in stocks might justify a higher long-run figure; one shifting toward bonds as college nears warrants something lower. The default uses 6% compounded monthly, an effective 6.17% a year. Remember this is the net return after fees, and that real results swing year to year, so a steady rate is a planning convenience, not a forecast.

No. This tool gives estimates to help you frame the conversation, not individual guidance. It cannot weigh your full finances, your tax position, aid eligibility, or the trade-offs between account types and investments. Before committing to a plan or choosing an account, speak with a qualified financial, tax, or legal professional who can tailor the approach to your circumstances. Use these projections as a starting point, then get advice specific to you.