College Savings Calculator
A target set in today's money is already wrong. College costs rise every year, including the years your child is at it. This works out what each year will genuinely cost when it arrives.
You need to put aside each month
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- The real target
- $0
- What it would cost at today's prices
- $0
- Rising costs add
- $0
- What you have already grows to
- $0
- Still to find
- $0
Where the money goes
The green block is you have already grows to and it stays yours. The orange is it would cost at today's prices and it does not come back.
Move it and watch
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at {v} for what one year costs today
And what you can change
Why your own figure may differ
What each year will actually cost
Costs keep rising while your child is there, so the final year is always the dearest.
| Year of study | Years from now | What it will cost | Above today's price |
|---|
Each year of study costs today's price multiplied by cost rises compounded over the years until that particular year arrives. The monthly amount is the shortfall spread over the months you have, allowing for growth on what you put in.
Saving for college: real examples
Three views of the same goal. Click any card to load it.
- The number that shocks people
$25,000 a year, starting in 10 years
Costs rising 5% a year.
Four years will cost $175,518, not the $100,000 that today's prices suggest. Rising costs add $75,518 on their own.
Load this scenario in the calculator → - Starting from birth
Eighteen years to save
The same college, started much earlier.
The target is bigger still - but you have far longer to get there, and growth does much more of the work than your own contributions.
Load this scenario in the calculator → - Covering half
Aiming at two years, not four
A deliberate decision to share the cost.
The monthly amount halves. Deciding what share you intend to cover is worth more than any calculator, and worth saying out loud early.
Load this scenario in the calculator →
Common questions about saving for college
Why is my target so much bigger than today's costs?
Because college costs rise, and they have generally risen faster than prices in the shops. Setting a target in today's money means aiming at a number that will already be wrong by the time you need it. This tool works out what each year will actually cost when it arrives.
Where does your cost figure come from?
From you. Averages get quoted a lot, but they hide enormous differences between a local public college and a private one, and between living at home and not. Look up the actual colleges you have in mind and put their real published figures in.
What is a 529 plan?
A savings account meant for education. The money grows without being taxed, and comes out untaxed when spent on qualifying education costs. Some states also give a tax break on what you put in. That untaxed growth is the whole advantage, and it gets bigger the earlier you start.
What if my child does not go to college?
The money is not stranded. It can go to another child, to yourself, or to certain other education. Taking it out for anything else means tax and a penalty on the growth part only - never on what you put in. Worth knowing before you decide the amount.
Should I save for this before my own retirement?
Generally no, and this is the honest answer people dislike. Your child can borrow for college; you cannot borrow for retirement. Most planners would fill your retirement saving first and put college money after it. Saving for both is fine - saving for college instead is usually a mistake.
Do I have to cover the whole thing?
No, and most families do not. Grants, scholarships, part-time work and a manageable amount of borrowing all count. Deciding what share you intend to cover, and being honest with your child about it early, is worth more than any calculator.