How Much Do You Need to Save for College?
The calculator projects today's college price forward with your chosen cost-inflation rate, adds up every year of school, and solves for the monthly deposit that gets your 529 (plus what you already have) to that total by the first day of college. It assumes the full amount is saved before enrollment, which is conservative — in practice money left in the account keeps growing while your child is in school.
What Does College Cost?
Average published prices for 2025–26 from the College Board's Trends in College Pricing (tuition and fees plus on-campus room and board; books, transport and personal costs are extra):
| School Type | Per Year (2025–26) | 4 Years at Today's Price | 4 Years Starting in 13 Years (4% inflation) |
|---|---|---|---|
| Public in-state | $25,850 | $103,400 | $182,800 |
| Public out-of-state | $45,780 | $183,120 | $323,700 |
| Private nonprofit | $60,920 | $243,680 | $430,700 |
| Highly selective private (illustrative) | ~$90,000 | ~$360,000 | ~$636,000 |
These are sticker prices. According to the same College Board report, the average student pays considerably less after grant aid, especially at private colleges, so treat these figures as an upper bound for planning.
Monthly Savings Needed by Child's Age
Goal: four years at a public in-state college, costs rising 4% a year, 6% investment return, starting from $0:
- Start at birth: about $574/month for 18 years (cost then: ~$222,000)
- Start at age 5: about $776/month for 13 years (cost then: ~$183,000)
- Start at age 10: about $1,223/month for 8 years
- Start at age 15: about $3,139/month for 3 years
For a private nonprofit college the same plan needs about $1,353/month from birth, $1,829 from age 5, $2,882 from age 10 and $7,398 from age 15. Waiting shortens the compounding period, so each month of delay raises the required deposit.
529 Plans: How They Work
A 529 plan is a tax-advantaged account for education. Contributions are made with after-tax money (no federal deduction), growth is not taxed, and withdrawals are federally tax-free when spent on qualified education expenses such as tuition, fees, books, and room and board for students enrolled at least half-time.
- State tax breaks: more than 30 states give a deduction or credit for contributions; rules and caps vary by state.
- K–12 tuition: up to $20,000 per beneficiary per year can be used for K–12 expenses starting in 2026 (raised from $10,000 by the 2025 budget law).
- Gifting: contributions count as gifts. The 2026 annual exclusion is $19,000 per recipient, and 529s allow five years to be front-loaded at once — up to $95,000 per donor ($190,000 for a married couple).
Example tax savings: $500/month for 18 years at a 7% return grows to about $215,000, of which about $107,000 is growth. Taxed at a 15% long-term capital-gains rate, that growth would cost about $16,000 in federal tax; in a 529 used for qualified expenses, it costs nothing.
Saving vs. Borrowing
Save $300/month from birth at 6%: about $116,000 by age 18 — more than today's four-year public in-state price, though less than the projected future cost.
Borrow $100,000 at 6%: a 10-year repayment costs about $1,110/month ($133,000 total); stretching to 25 years lowers the payment to about $644/month but raises the total to about $193,000. (Federal loans for dependent undergraduates are capped well below $100,000, so larger balances usually involve parent or private loans.)
Many families combine the two: partial savings, scholarships and grants, part-time work, and a modest loan balance.
Common College Savings Mistakes
- Waiting too long: starting at age 10 instead of birth roughly doubles the monthly amount needed.
- Using a taxable account by default: you pay tax on dividends and gains that a 529 would shelter.
- Ignoring the time horizon: with many years to go, a stock-heavy allocation is common; most plans' age-based portfolios move toward bonds automatically as enrollment nears.
- Forgetting cost growth: plan with future prices, not today's.
- Neglecting retirement: students can borrow for college; you cannot borrow for retirement. Capture your full 401(k) match before stretching for college savings.
What If You Save Too Much?
- Change the beneficiary to a sibling, cousin, parent or yourself without tax.
- Use it for graduate school, trade schools, apprenticeships, or (since 2026) many K–12 and credential expenses.
- Roll up to $35,000 (lifetime) into the beneficiary's Roth IRA, if the 529 has been open at least 15 years; yearly rollovers are limited by the Roth IRA contribution limit.
- Non-qualified withdrawal: the earnings portion is taxed as income plus a 10% additional tax (waived up to the amount of tax-free scholarships).