College Savings Calculator

Saving for college means setting money aside, ideally invested, so that when a child reaches university age you can cover tuition and expenses without relying entirely on loans. Because college costs have historically risen faster than general inflation, and because you have a fixed deadline — the year your child enrolls — planning early makes an enormous difference.

The first step is projecting the future cost. A degree that costs a certain amount today will cost considerably more in 10 or 18 years after education inflation, which has often run higher than the general rate. Estimating that future figure gives you a realistic target rather than a number anchored in today's prices. The longer your time horizon, the more inflation compounds the cost — but also the more time your savings have to grow.

Once you know the target, the question becomes how much to save each month. This depends on three things: the goal amount, the time you have, and the rate of return on your savings. Thanks to compounding, money invested when a child is young does far more work than money added in their teens, so starting early sharply reduces the monthly amount required. A modest monthly contribution begun at birth can outpace a much larger one begun in high school.

Where you save matters too. In the US, 529 plans are the most popular college-savings vehicle: contributions grow tax-free and withdrawals for qualified education expenses are tax-free, and many states offer a tax deduction or credit for contributing. Other options include Coverdell accounts and custodial accounts, each with different rules. The tax-free growth of a dedicated education account can meaningfully boost what you accumulate compared with a taxable account.

It's wise to balance college savings against other priorities — notably retirement, since you can borrow for college but not for retirement. Many planners suggest funding retirement first or alongside, then directing what you can toward education. Financial aid, scholarships and the option of in-state public schools can also reduce the amount you ultimately need. This calculator turns the goal into a concrete monthly number so you can build it into your budget and adjust as circumstances change.