College Savings Calculator

Five Ways to Save for College. One Right Answer for You

Every year you wait to start a college fund costs you more than you think. Waiting until your child is 8 instead of starting at birth can double the monthly savings required to hit the same target.

This calculator lets you see that math in real time — enter your child's age, set a college cost target, and instantly compare five different savings vehicles side by side: 529 plans, taxable accounts, Coverdell ESAs, UGMA/UTMA accounts, and savings accounts. You'll see exactly what each one requires monthly, what each one leaves you with after taxes, and how your state's 529 deduction changes the math.

College Savings Calculator

How much do you need to save each month to fund college -- and which account type gets you there most efficiently? Compare 529 plans, taxable accounts, Coverdell ESAs, UGMA/UTMA, and savings accounts side by side.

Child & Goal

Child's current ageEvery year earlier you start compounds significantly. Starting at birth vs age 5 can reduce required monthly savings by 30-40%.

Target college costSet your total 4-year target in today's dollars. The calculator inflates this to future dollars. 2024 averages: public in-state ~$115k, public out-of-state ~$200k, private ~$240k (tuition, fees, room, board).

Current savingsAny amount already saved in any account type. This reduces the monthly contribution needed going forward.

College cost inflationCollege costs have historically risen ~5-6% per year -- faster than general inflation. This is the most important assumption in the model. Higher inflation = larger future target.

Child's current age3

Target college cost (today's $)$120,000

Amount already saved$0

College cost inflation rate5.0%

Investment Assumptions

Expected investment returnPre-tax annual return on invested assets. For age-appropriate 529 portfolios: aggressive (stock-heavy) 7-8%, moderate 5-6%, conservative 3-4%. Savings accounts: 4-5% current rates.

Savings account rateThe rate used for the low-risk savings/CD option. High-yield savings accounts currently pay 4-5%. This rate is taxed annually as ordinary income.

Federal tax rateYour marginal federal income tax rate. Used to calculate tax drag on taxable accounts, UGMA, and savings account interest. Common rates: 22%, 24%, 32%.

Capital gains rateLong-term capital gains rate for taxable brokerage and UGMA accounts. Most households pay 15%. High earners ($553k+) pay 20%.

Expected investment return6.0%

Savings account / CD rate4.5%

Federal income tax rate24%

Long-term capital gains rate15%

529 State Tax Deduction

State income tax rateYour state income tax rate. About 35 states offer a deduction or credit for 529 contributions. Set to 0% if your state has no income tax or no 529 deduction.

Annual deduction limitMaximum annual 529 contribution eligible for state deduction. Varies widely: NY allows $5k/filer ($10k joint), CA has no deduction, VA allows $4k/account. Check your state's rules.

How the deduction worksEach year you contribute to a 529, you can deduct up to the limit from state taxable income. Your actual tax savings = deduction amount * state tax rate. This effectively reduces the net cost of 529 contributions.

State income tax rate5.0%

Annual 529 state deduction limit$5,000

Monthly savings needed (529 plan)

to reach inflation-adjusted college cost

Future college cost

inflation-adjusted target

Years until college

months to save

529 net monthly cost

after state tax savings

Annual state tax savings

from 529 deduction

Lifetime state tax savings

total deduction benefit

Coverdell ESA limit

max $2,000/yr ($167/mo)

Account type	Monthly needed	Net spendable	Tax advantage

Projected balance over time (saving monthly via 529)

529 plan

Taxable brokerage

Savings account

Target (inflation-adj.)

Monthly savings needed by starting age (529 plan)

Disclaimer: Results are estimates based on your inputs and assumed constant rates of return. Actual investment returns vary and are not guaranteed. 529 state deduction benefits vary by state -- verify your state's rules. Coverdell ESA income limits apply. UGMA/UTMA kiddie tax thresholds are 2024 values. This calculator is for educational purposes and does not constitute financial or tax advice.

College Savings Calculator

Five Ways to Save for College. One Right Answer for You

College Savings Calculator

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