College Savings Calculator
Project 529 plan growth from birth to college age. See how monthly contributions compound over 18 years with tax-free growth.
Results
Visualization
How It Works
A 529 plan grows tax-free when used for qualified education expenses. Starting at birth with $200/month at 7% returns grows to about $87,000 by age 18. Current 4-year college costs range from $100K (public in-state) to $250K (private). Not financial advice.
The Formula
Future Value = Initial x (1 + r)^n + Monthly x [(1 + r)^n - 1] / r
r = annual rate / 12, n = years x 12
College cost inflation: ~5% per year
r = annual rate / 12, n = years x 12
College cost inflation: ~5% per year
Variables
- Tax-free growth — 529 plan earnings are not taxed when used for education
- 5% inflation — College costs historically rise 5% per year
Example
$1,000 initial + $200/month for 18 years at 7%: ~$87,000 projected balance, covering ~36% of projected private university costs.
Tips
- Start as early as possible -- compounding over 18 years is powerful
- Many states offer tax deductions for 529 contributions
- Unused 529 funds can be transferred to siblings or even rolled to a Roth IRA (2024 rule)
- Grandparents can contribute too -- great alternative to toys as gifts
- Choose an age-based portfolio that automatically shifts to bonds as college approaches