Finance
529 Calculator
Project your child's 529 college savings against future tuition. Compares fund growth to inflated college costs and shows the monthly contribution needed.
Your 529 college savings plan
Projected 529 balance in 13 years
$139,496
Projected total college cost: $227,567
Projected shortfall.
Gap at college start: $88,071
Growth on current savings
$21,772
Growth on contributions
$117,724
Total contributed
$88,000
First-year college cost
$52,798
Required monthly to fully fund
$874
Tax notes
Qualified withdrawals from a 529 plan are federal income tax-free when used for eligible education expenses. Many states also offer an income tax deduction or credit for contributions to an in-state plan, so check your state's rules before choosing where to open the account.
Frequently Asked Questions about the 529 Calculator
What is a 529 plan?
A 529 plan is a state-sponsored tax-advantaged investment account designed to pay for qualified education expenses. Contributions grow federal income tax-free, and qualified withdrawals are also free of federal income tax. You can usually invest in any state's plan regardless of where you live.
Are 529 withdrawals really tax-free?
Withdrawals used for qualified education expenses at an eligible institution are free of federal income tax on both contributions and earnings. Non-qualified withdrawals owe federal income tax plus a 10% penalty on the earnings portion.
Why is college cost inflation set higher than CPI?
College tuition has historically risen 4% to 6% per year, well above the roughly 2% to 3% general CPI. The default 5% reflects long-run averages for published tuition at four-year US colleges.
What annual return should I assume on a 529?
Most 529 plans offer age-based portfolios that start stock-heavy and shift toward bonds as the child approaches college. A moderate blend has historically returned about 6% to 7% per year over long horizons. The default 6% sits in the middle of that range.
What if my child does not go to college or earns a scholarship?
Unused funds can be transferred tax-free to another eligible family member, used for K-12 tuition (up to $10,000 per year), applied to student loan repayment (up to $10,000 lifetime), or rolled into a Roth IRA for the beneficiary (subject to a $35,000 lifetime cap under SECURE 2.0).