The College Cost Calculator estimates future college costs and the monthly savings needed to pay for a chosen share of them, based on today's costs, cost growth, savings and investment return.
Save $1,344.36 a month to cover 35% of college costs.
| Total college cost | $154,624.87 |
| Amount from savings | $54,118.70 |
| Your current savings will grow to | $0.00 |
| Monthly saving needed | $1,344.36 |
| Yearly saving needed | $16,132.27 |
Published yearly costs including tuition, fees, room and board average roughly $31,000 at in-state public four-year colleges, about $51,000 for out-of-state students, around $65,000 at private non-profit colleges and about $21,000 at two-year public colleges. Many students pay less after grants and scholarships, so use the net price calculator on each college's website for a personal figure.
College prices have historically risen faster than general inflation; 5% a year is a common planning assumption. At 5%, a $30,990 year today becomes about $35,900 in three years and $50,500 in ten.
The calculator projects each year of college cost, takes the share you plan to cover from savings, and discounts it back to the first day of college at your after-tax return. It grows your existing savings to that date and works out the level monthly deposit that fills the gap.
Worked example (defaults): four years starting in three years, 35% covered by savings, 5% return taxed at 25%. The total cost is about $155,000, and saving a few hundred dollars a month covers the 35% share.
529 plans grow tax-free when used for qualified education costs, and many states give a tax deduction for contributions; set the tax rate to 0% for 529 savings. Coverdell ESAs, Roth IRAs and ordinary brokerage accounts are alternatives. Financial aid, work-study, community college for the first two years and in-state schools can all cut the bill.
What share should savings cover? A common rule is one-third from savings, one-third from current income during college and one-third from aid and loans.
Does saving reduce financial aid? Parent-owned 529 assets count only lightly in the federal aid formula.
What if my child does not go to college? 529 money can be moved to another family member or, within limits, rolled into a Roth IRA.