529 College Savings Calculator

College costs rise faster than general prices, so starting early makes a big difference. A 529 plan lets savings grow tax-free for education. This calculator projects your balance, estimates the future cost of college and shows how much you'd need to save each month to cover your goal.

What this calculator does

Enter your current 529 balance, monthly contribution, years until college, investment return, yearly college cost today, college inflation, the share of costs you want to cover and the yearly value of any state tax deduction. The calculator shows:

• your projected 529 balance when college starts,
• the projected four-year cost for your share,
• the share of the cost covered,
• the monthly contribution needed to fully fund your goal, and
• your state tax savings until college.

The formula in plain English

Projected balance = current balance and monthly contributions growing at your return until college starts.

Future cost = today's yearly cost increased by college inflation each year, added up for the four years of college, starting in the year your child enrolls. Then multiplied by the share you want to cover.

Share covered = projected balance ÷ future cost.

Monthly needed = the monthly amount that, with your current balance, grows to the future cost by the time college starts.

State tax savings = yearly deduction value × years until college.

A worked example

The Martins have $10,000 in a 529 for their daughter, who starts college in 12 years. They contribute $400 a month, expect a 6% return, and plan for a school that costs $30,000 a year today, with 5% college inflation.

• Projected balance: about $104,600.
• Projected four-year cost: about $232,200.
• Covered: about 45%.
• To cover it fully, they'd need about $1,007 a month.

They decide to raise their contribution to $600 and plan for scholarships and current income to cover the rest.

Why it matters at each career stage

If you're: Resident / fellow

With tight budgets, college savings often wait. That's reasonable. Even small contributions, or asking grandparents to contribute to a 529 instead of gifts, can add up over 18 years.

If you're: Employed

After training, set up automatic contributions once retirement savings are on track. Check whether your state offers a tax deduction.

If you're: Practice owner

Owners with variable income can make larger lump-sum contributions in good years. Some families use "superfunding," contributing up to five years of gift-tax exclusions at once.

Tips for 529 savers

Start early. Time does much of the work.

Choose low-cost plans. Fees matter over 18 years. You can use any state's plan, though your own state's may give a tax break.

Use age-based portfolios. They automatically become more conservative as college nears.

Ask family to contribute. Many plans make gifting easy.

Don't overfund. Balance college savings with retirement and other goals.

About the assumptions

College costs vary hugely. In-state public schools, private colleges, community college and scholarships all change the numbers. Try a few different costs and coverage percentages to see a range rather than a single target.

Next, plan childcare costs for younger children, see how compound interest grows savings, and set a family budget.