College Savings Goal Calculator
Calculate how much you need to save monthly to reach your college savings goal by enrollment date.
Starting early matters more for college savings than almost any other investment goal because the timeline is fixed. A child born today has 18 years for contributions to compound. A child who is 10 has 8 years. The monthly contribution required approximately doubles for every three or four years you delay. This calculator makes that urgency concrete.
Starting a 529 at birth vs age 5 for the same $80,000 goal at 6.5% return roughly halves the required monthly contribution. Time is the most valuable input in college savings, more than the choice of investments.
529 plans and tax advantages
A 529 education savings plan grows tax-free and distributions are tax-free when used for qualified education expenses. Many states also offer a state income tax deduction for contributions (typically 20% credit on up to $5,000 per year per beneficiary). The combination of tax-free growth and a state deduction makes 529s the dominant vehicle for college savings. Unused funds can be rolled over to a Roth IRA (up to $35,000 lifetime limit, subject to annual Roth contribution limits) or transferred to another family member.
What to target
Four-year public in-state tuition, room, and board currently averages about $28,000 per year ($112,000 total). Four-year private college averages about $58,000 per year ($232,000 total). With education inflation historically running 3–5% annually, costs will be significantly higher by the time today's young children enroll. A target of $80,000–$120,000 covers a significant portion of public university costs; $150,000–$200,000+ targets private school coverage. Savings don't need to cover 100% of cost, financial aid, scholarships, work-study, and student loans are also part of the picture.
Investment allocation for 529s
Age-based allocation is the most common approach, heavily weighted toward stocks when the child is young, shifting to bonds and stable value as enrollment approaches. Most 529 plans offer age-based portfolios that make this automatic. The principle is the same as a target-date retirement fund: you can afford volatility when you have time, but not when you need the money in 2–3 years.
Frequently asked questions
What if my child doesn't go to college?
529 funds can be transferred to another family member (sibling, cousin, even yourself) without penalty. Funds can now also be rolled to a Roth IRA (up to $35,000 lifetime limit after a 15-year holding period). Non-qualified withdrawals trigger income tax plus a 10% penalty on the earnings portion, not ideal but not catastrophic if the account has appreciated significantly.
Can grandparents contribute to a 529?
Yes. As of 2024, grandparent-owned 529 plans no longer affect financial aid calculations under the updated FAFSA rules (previously, grandparent distributions counted as student income). Grandparents can also superfund a 529, contribute up to 5 years of gift tax exclusion ($90,000 per individual, $180,000 per couple) in a single year using a special election.
Should I prioritize retirement savings over college savings?
Most financial planners say yes, your child can borrow for college; you cannot borrow for retirement. Max employer 401(k) match first, fund your own retirement adequately, then direct remaining savings to 529. College savings is a priority, but not above your own retirement security.