College / 529 Education Savings Plan Calculator

How to use this tool

1. Enter your child's current age and the expected college start age.
2. Choose an average annual budget preset or enter a current cost, then set cost inflation.
3. Set your current savings, monthly contribution, and expected investment return.
4. Choose the share of projected cost to fund and compare your savings with that goal.

529 plan overview

A 529 plan is a tax-advantaged savings account designed specifically for education expenses. Key features:

• Tax-free growth: contributions grow tax-free, and qualified withdrawals are also federal-tax-free. Many states offer a state income tax deduction for contributions.
• Qualified expenses: tuition, fees, books, room and board, computers and required technology. As of 2019, up to $10,000/year can also be used for K-12 tuition.
• Contribution limits: there is no annual federal contribution limit, but contributions above the annual gift tax exclusion ($18,000 per donor in 2024) may require a gift tax return. Total account limits vary by state ($235,000–$550,000+).
• Rollovers: starting in 2024, unused 529 funds can be rolled over to a Roth IRA for the beneficiary (up to $35,000 lifetime limit, subject to annual Roth limits).

2025–26 college budget presets

These are College Board national-average estimated student budgets for full-time undergraduates in 2025–26, not tuition-only prices. Budgets include tuition and fees, housing and food, books and supplies, transportation, and other expenses; the public two-year figure is for an in-district commuter student. The calculator's presets fill today's annual cost with these amounts, and you can edit that value to match a specific school's costs and your housing plans. Actual costs vary by institution and student. Source: College Board, Trends in College Pricing and Student Aid 2025, Figure CP-1 (p. 11).

Tuition inflation

College tuition has historically inflated at roughly 5–6% per year, well above general CPI inflation. This means a degree costing $30,000/year today could cost ~$55,000–65,000/year 15 years from now. Using a 5% annual college inflation rate in your projections is a reasonable conservative estimate.

Financial aid interaction

A 529 plan owned by a parent is counted as a parent asset on the FAFSA, assessed at a maximum of 5.64% toward the student's Expected Family Contribution (EFC). By contrast, assets held in the student's name are assessed at up to 20%, making parent-owned 529s more favorable for financial aid purposes. Starting with the 2024–25 FAFSA (the FAFSA Simplification Act), grandparent-owned 529s no longer reduce financial aid eligibility when funds are withdrawn.