Plan your child’s future today with our 529 Plan Calculator – accurately estimate education costs and discover how much to save each month.
Total cost: $0
Total monthly required contribution: $0
| Year | Annual school fee | Required contribution |
|---|
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. It’s named after Section 529 of the federal tax code and can be used to cover qualified educational expenses like tuition, fees, and room and board at colleges and universities across the country. Many states offer 529 plans, and they can be a powerful tool for parents looking to save for their children’s education.
Saving for college or K-12 education can feel overwhelming, but using a 529 plan calculator helps you plan and understand how much you need to save each month to meet your education savings goals. By inputting details such as your child’s age, the anticipated cost of college, and the return on your investment, the calculator gives you a clear picture of what future education costs might look like and the steps you need to take now.
Using the 529 plan calculator is simple. Start by entering your child’s current age and the age when they will begin their education. Next, input the number of school years you’re saving for (up to 12 years for K-12 or 4 years for college). Add the current cost of education, expected inflation, and any initial investment you may have already made. The calculator will then project the total future education costs and show you the monthly savings required to meet those costs. You can adjust the assumptions to see different scenarios.
Let’s walk through a scenario to show how the 529 Plan Calculator calculates education savings. Imagine you have a child who is currently 10 years old, and you want to start saving for their four-year college education, which will start at age 18. Here’s how the calculator would work:
| Input | Value |
|---|---|
| Current Age | 10 years |
| Age at Start of College | 18 years |
| Number of School Years | 4 years |
| Current Annual College Fee | $10,000 |
| Cost Inflation Rate | 4% per year |
| Initial Investment | $0 |
| Annual Investment Return | 8% per year |
The calculator first determines how many years until your child starts college: Years until college = Age at start of college - Current age = 18 - 10 = 8 years
The calculator uses the inflation rate to project how much the cost of college will be in the future for each year. The formula for calculating the future cost of education is: Future Cost = Current Cost × (1 + Inflation Rate) ^ Years