College savings involves two moving numbers, not one: the cost of tuition keeps rising between now and enrollment, and the money saved toward it grows at its own, usually different, rate.
How it works
Today’s estimated cost is projected forward at a college-cost inflation rate to find what it’s likely to cost when the child actually enrolls. Current savings are separately projected forward at an expected investment return. The gap between the two is closed with a monthly contribution, using the same backward compound-interest method as this site’s savings goal calculator.
Why college-cost inflation, not general inflation
Tuition and fees have historically risen faster than general consumer prices over long stretches, which is why this calculator uses its own adjustable rate rather than borrowing a general inflation figure that would understate the target.
How to use this calculator
- Enter the child’s current age and the age college is expected to start.
- Enter today’s estimated 4-year cost and expected tuition inflation.
- Enter what’s already saved and the expected investment return on it.
Frequently asked questions
Does this account for financial aid or scholarships?
No — it projects the full estimated cost. Aid and scholarships would reduce the actual amount needed, but they’re impossible to predict years in advance.
Why is the future cost so much higher than today’s estimate?
Compounding college-cost inflation over many years, even at a modest annual rate, adds up substantially — the same effect as any long-horizon compound growth, just working against the saver here instead of for them.
Should I use a 529 plan specifically for this?
A 529 plan offers tax advantages for education savings in the U.S., but this calculator’s math applies to any savings vehicle — it doesn’t assume a specific account type.
