Project future college costs with inflation, see how your 529 plan grows, and find the monthly savings needed to hit your goal. Works for any school type.
Your child
Child's current age
Type of college
Custom annual cost today
$
Years of college
Your 529 plan
Current 529 balance
$
Monthly contribution
$
Assumptions
Annual investment return
6%
Annual college cost inflation
5.5%
Projected total college cost
$0
When your child starts college
Projected 529 balance
$0
At college start
Coverage
0%
Shortfall / surplus
$0
Monthly needed for 100%
$0
529 balance vs projected college cost
529 balance
Total cost
Year-by-year savings vs cost projection
Years to college
Child's age
529 balance
Projected annual cost
4-yr total cost
Key 529 facts for 2026: Contributions grow tax-free and qualified withdrawals (tuition, fees, room and board, books) are tax-free at the federal level. Many states offer a state income tax deduction for contributions — check your state's plan. The annual gift tax exclusion for 529 contributions is $19,000 per donor per beneficiary in 2026 ($38,000 for married couples). You can front-load 5 years of contributions ($95,000 per donor, $190,000 for married couples) without triggering gift tax. No federal annual contribution limit — state lifetime limits typically range from $300,000 to $550,000+ per beneficiary.
College cost estimates are based on published 2026 averages from the College Board and NCES. Projections use simplified compound growth models — actual results depend on market returns, college cost inflation, financial aid, and scholarship availability. This calculator does not account for financial aid, state-specific 529 tax benefits, or fees. Not financial advice. Consult a qualified financial advisor before making education savings decisions.
How the 529 college savings calculator works
This calculator projects two things simultaneously: how much your 529 plan will grow based on contributions and investment returns, and how much college will cost by the time your child enrolls — accounting for college cost inflation, which has historically run 4–6% per year, significantly above general inflation. The gap between the two tells you your shortfall or surplus, and the calculator shows the monthly contribution needed to cover 100% of projected costs.
A worked example
A child born today with parents saving $300/month from birth, targeting an in-state public university:
18 years, $300/month, 6% return, 5.5% college inflation
Current in-state cost (today)$25,290/year
Projected cost at college start (2044)~$62,200/year
Total 4-year projected cost~$268,000
Total contributions ($300 × 216 months)$64,800
Projected 529 balance at 18~$118,000
$300/month from birth covers approximately 44% of projected in-state costs. To cover 100%, you'd need roughly $680/month starting at birth — illustrating why starting early and contributing consistently matters enormously. The same $680/month started at age 5 (13 years to go) would cover far less, because compounding has less time to work.
What a 529 plan actually is — and what it isn't
A 529 plan is a tax-advantaged savings account sponsored by a state, designed specifically for education expenses. Contributions are made with after-tax dollars, but earnings grow tax-free and withdrawals for qualified education expenses — tuition, fees, room and board, books, supplies — are tax-free at the federal level. Many states also offer a state income tax deduction for contributions.
What it is: A flexible, tax-efficient savings vehicle with high contribution limits (state lifetime limits typically $300,000–$550,000+), no income limits, and broad qualified expense coverage including K-12 tuition up to $10,000/year and even student loan repayment up to $10,000 lifetime. Under SECURE 2.0, up to $35,000 of unused 529 funds can roll into a Roth IRA for the beneficiary (account must be open 15+ years; annual rollover limited to the Roth contribution limit).
What it isn't: A guaranteed college funding solution. Non-qualified withdrawals incur income tax plus a 10% penalty on earnings. The account value can decline if markets fall — sequence of returns risk is real, especially in the years just before college when a significant drawdown could reduce available funds meaningfully. Most financial planners recommend shifting to more conservative allocations as college approaches (ages 16–18).
Frequently asked questions
What if my child doesn't go to college?
You have several options. Change the beneficiary to another family member — a sibling, cousin, or even yourself — with no taxes or penalties. Use the funds for trade school, apprenticeship programs, or K-12 tuition. Roll up to $35,000 lifetime into a Roth IRA for the original beneficiary (account must be at least 15 years old; annual rollovers are subject to Roth contribution limits). As a last resort, withdraw the money as a non-qualified distribution — you'll owe income tax plus a 10% penalty on earnings only, not on contributions. The flexibility introduced by SECURE 2.0 has substantially reduced the "what if they don't go?" concern that previously made parents hesitant to open 529 accounts.
Does a 529 plan affect financial aid?
Yes, but less than many parents fear. A parent-owned 529 plan counts as a parental asset on the FAFSA, which reduces expected financial aid by a maximum of 5.64% of the account value — meaning a $50,000 529 balance reduces aid eligibility by at most $2,820. Grandparent-owned 529 plans have no impact on the FAFSA under the simplified rules effective for the 2024–2025 aid year and beyond. Student-owned accounts are assessed at a higher rate (20%), so parent ownership is generally more advantageous.
Should I use my state's 529 plan or another state's?
You are not required to use your home state's plan — 529 plans can be used at any eligible institution nationwide (and many internationally). If your state offers a meaningful income tax deduction for 529 contributions, the in-state plan is often worth using even if it has slightly higher fees. If your state offers no deduction (California, for example, offers none), you're free to shop for the lowest-cost national plan. Utah, New York, and Nevada plans are frequently cited for low fees and strong investment options — verify current fees and options before opening an account.
Can grandparents contribute to a 529 plan?
Yes. Grandparents (or anyone) can contribute to a 529 plan for a beneficiary. The annual gift tax exclusion is $19,000 per donor per beneficiary in 2026 — a grandparent can contribute up to $19,000 without gift tax implications. Grandparents can also front-load 5 years of contributions ($95,000 per donor) in a single year without triggering gift tax, under the 529 superfunding election. Grandparent-owned 529 plans no longer affect FAFSA calculations under the simplified rules effective 2024–2025.
How should I invest a 529 plan?
Most 529 plans offer age-based portfolios that automatically shift from aggressive (stocks) to conservative (bonds, stable value) as college approaches — these are the simplest option for most families. If you choose your own allocation, financial planners generally suggest: aggressive growth (80–100% stocks) when the child is under 10; moderate (60–70% stocks) from ages 10–15; conservative (30–40% stocks) from ages 16 onward. The goal is to protect accumulated gains from a market downturn in the years immediately before tuition is due.