College Savings Calculator

Estimate future college costs and required savings.

Enter details about your child and savings goals.

Projections use averages and compound growth. Actual costs and returns will vary. Does not account for financial aid or taxes.

Planning for Higher Education Costs

The cost of college education continues to rise, making early planning and saving essential. This calculator helps you estimate the projected future cost of a 4-year college education based on current costs and expected inflation, and then estimates how much you might need to save regularly (monthly or annually) to reach that goal, considering your current savings and potential investment returns.

How to Use

  1. Enter the **Child's Current Age**.
  2. Enter the **Age** the child is expected to **Start College** (typically 18).
  3. Enter the **Current Annual Cost** of the type of college you're targeting (include tuition, fees, room, board, books). Research average costs for public in-state, public out-of-state, or private institutions.
  4. Enter the **Estimated Annual Cost Increase Rate** (college inflation rate, often estimated around 4-6%).
  5. Enter the **Current Amount Already Saved** towards this goal.
  6. Enter the **Estimated Annual Rate of Return** you expect on your savings/investments (be realistic based on your investment strategy).
  7. Click "Calculate Savings Needed".

The results will show the number of years until college, the estimated total 4-year cost at that future time, the total savings goal (future cost minus projected growth of current savings), and the estimated monthly or annual savings required to reach that goal.

Calculation Overview

  • **Years Until College:** `College Start Age - Child's Current Age`
  • **Future Annual Cost:** `Current Annual Cost * (1 + Cost Increase Rate)^Years Until College` (Calculated for each of the 4 years of college)
  • **Total Future Cost:** Sum of the 4 future annual costs.
  • **Future Value of Current Savings:** Calculated using compound interest based on the current savings, rate of return, and years until college.
  • **Savings Goal (Shortfall):** Total Future Cost - Future Value of Current Savings.
  • **Required Savings:** Calculates the periodic (monthly/annual) deposit needed in an annuity formula to reach the Savings Goal, considering the rate of return and saving duration.

Disclaimer

These are projections based on estimates. Actual college costs, inflation rates, and investment returns will vary. This tool doesn't factor in potential financial aid, scholarships, grants, or taxes on investment earnings. It's a planning tool; consult with a financial advisor for personalized college savings strategies (e.g., 529 plans).