Money & Finance
529 College Savings Calculator
See what four years of college will cost when your child enrolls, how far your 529 gets you, and the monthly savings that closes the gap.
How it works
Behind the numbers
College costs are projected forward, not taken at face value. Today's annual cost is inflated year by year until enrollment, then summed across all four years. The sophomore year costs more than the freshman year, so a single-year snapshot understates the bill. The default 5% inflation matches tuition's long-run trend; change it if your outlook differs.
Your savings grow with monthly compounding: the current 529 balance compounds for the full horizon while each monthly contribution compounds from its deposit date. The gap is the projected cost minus the projected balance, and the monthly target is solved backwards from the gap with the standard payment formula. If the balance already covers costs, the page says you're on track instead of inventing a target.
The 529-vs-taxable row shows the account's real edge: in a 529, qualified withdrawals are tax-free; in the simplified taxable comparison, gains are taxed at 15% at the end. The optional state section converts your deduction into yearly tax savings. Under SECURE Act 2.0, up to $35,000 of unused 529 funds can roll into a Roth IRA. Over-saving stings less than it used to.
FAQ
Questions, answered
How much should I save each month for college?
It depends on the child's age, the school type, and your return assumption. As a reference point, saving about $775-$800 a month from birth at a 6.5% return covers roughly $317,000 in projected four-year costs for a public university. Enter your own numbers above. Starting earlier usually matters more than saving more, because compounding does the heavy lifting.
Is there a 2026 contribution limit for 529 plans?
The IRS sets no annual contribution limit for 529 plans, but gifts above the $19,000 annual gift-tax exclusion per beneficiary in 2026 may require filing a gift tax return. Superfunding lets you front-load five years of exclusions, up to $95,000 per beneficiary, in a single year. States set their own aggregate limits, often above $300,000.
What happens to 529 money if my child doesn't go to college?
You have options. Change the beneficiary to another family member with no penalty. Under SECURE Act 2.0, up to $35,000 of unused funds can roll over into the beneficiary's Roth IRA. If you withdraw for non-education expenses, earnings are taxed as income plus a 10% federal penalty.
Is a 529 plan better than a regular brokerage account?
For education spending, usually yes: 529 earnings grow tax-free and qualified withdrawals are tax-free federally, plus many states offer a deduction on contributions. A brokerage account gives flexibility, with no penalty for non-education use, but gains are taxed. The calculator's 529-vs-taxable row quantifies the difference for your numbers.
Why does the calculator default to 5% college inflation?
College tuition has risen about 5% a year over the long run, well above general inflation. The school presets use College Board 2025-26 tuition and fees; room, board, and books are extra and often double the total. Adjust the inflation rate if your outlook differs. The projection updates live.