College Savings Calculator
What college could cost by the time it starts, at a cost growth you choose, and the monthly saving that would cover it at a return you choose.
Result
Enter yearly rise in that cost and expected yearly return on the savings to see the result.
https://calcgallery.com/education/college-savings-calculator/
Academic results are arithmetic estimates based on the values you enter. Your syllabus, school policies, transcript and official degree audit control actual grades and progress. Confirm important figures with your instructor, adviser or registrar. Read the full disclaimer
How to use the College Savings Calculator
- Enter what one year of college costs at today’s prices, and how fast you assume that cost will rise each year.
- Enter the years until college starts, how many years it lasts, what you have saved and the return you assume on the savings.
- Read the monthly saving needed, the projected cost and the fund you would need on the first day.
How the target is built
With today’s yearly cost C, a yearly cost rise g, college starting in Y years and lasting D years:
cost of college year k = C × (1 + g)^(Y + k), k = 0 … D − 1fund needed at the start = Σ cost of year k ÷ (1 + r/12)^(12k)Each year is assumed to be paid on its first day. The discount uses your return r, compounded monthly, because the rest of the fund is still invested while each year is paid.
The monthly saving
What you have saved now grows to S × (1 + r/12)^(12Y) by the time college starts. The shortfall is the fund needed less that amount, and the monthly saving is the level deposit, made at the end of each month, that grows to the shortfall in 12Y months. It is rounded to the cent, which is why the total you put in can differ from the shortfall by a few cents at a 0% return.
What this does not know
It does not know any college’s price, how prices will actually move, what aid or scholarships a student may receive, or which account or tax rules apply. It is a planning figure on your assumptions.
With your numbers
- Projected cost of 4 years = $210,622.18
- Fund needed when college starts, with the fund still earning = $192,265.91
- Shortfall = $192,265.91 − $18,193.97 = $174,071.94
- Monthly saving for 120 months = $1,062.20
Quick reference
Both rates are your own assumptions and nothing guarantees either. Aid, grants, scholarships and taxes are not included.
| Example | Monthly saving needed |
|---|---|
| 30,000 a year, 10 years away, 5% and 6% | $1,062.20 |
| The same, covering half | $475.59 |
| 20,000 a year in 5 years, no growth or return | $1,333.33 |
| 55,000 a year, 15 years away, 4% and 7% | $1,149.74 |
| Two years of college in 3 years | $617.95 |
| Already saved enough | €0.00 |
Common questions about the College Savings Calculator
- Why does the page ask me for the cost growth and the return?
- Because both are guesses about the future, and the answer depends heavily on them. The site does not supply a figure for either. Try a cautious pair and a hopeful pair to see the range, and base the cost on the colleges you are actually considering.
- Why is the fund needed less than the total cost?
- Because the money for later years stays invested while earlier years are paid. With four years to pay, only the first year is needed on the first day; the fourth is needed three years later and earns the return until then. The fund needed is each year’s cost discounted back to the start at your return.
- Does this include 529 plans or tax benefits?
- No. Account types, contribution limits and tax treatment differ by country and state and change over time. The arithmetic here is the same whatever account holds the money; the return you enter should be what you expect after fees.
- What if I only plan to cover part of the cost?
- Open More options and set the share to cover, for example 50% if a student loan, work or another family member will cover the rest. Every cost is scaled by that share.