How Much to Save Monthly for College
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Visualization
How It Works
This calculator first inflates today's annual college cost forward to the year your child starts school, then sums four rising years of tuition, fees, and room and board to get the future target. With a public school at $25,000 per year and 5% tuition inflation, the four-year bill at college start is notably higher than four times today's cost because each year compounds. We then solve the future-value-of-an-annuity formula for the monthly payment: P = (Target - Current x (1+r)^n) x r / ((1+r)^n - 1), where r is the monthly rate derived from your annual return assumption ((1+annual)^(1/12) - 1) and n is the number of months until college. The chart shows your contributed principal, total balance from compounding, and the college-cost target line all on the same timeline so you can see when the balance catches up. If the child is already 18 or older, the target is treated as due now and the calculator reports a one-time amount instead of a monthly payment.
What Should You Do?
Start as early as possible: every year of head start compounds and sharply reduces the required monthly amount, often more than doubling later contributions would. Treat the 6% return and 5% tuition inflation as assumptions, not forecasts; running a conservative 4-5% return builds in safety margin in case markets or college costs surprise you. Put the monthly amount on autopilot from a 529 or similar account so you never skip a month. Re-run the calculator whenever your income, the child's age, or college plans change. If the number feels high, a public in-state school instead of private is the single biggest lever, roughly halving the target.
Frequently Asked Questions
Are the $25k and $55k figures real?
They are illustrative annual averages for in-state public and private tuition plus room and board. Actual costs vary widely by school and state; replace them with your target school's published cost of attendance for a precise number.
Why does tuition inflation matter so much?
College costs have historically risen faster than general inflation. At 5% per year, costs roughly double every 14 years, so the four-year bill at college start is far above today's sticker price. For projected 10- and 20-year scenarios by enrollment year based on the latest 2026-27 College Board benchmarks, see DecisionsCalc's College Inflation Planning Guide.
Should I use a 529 plan?
A 529 grows tax-free when used for qualified education, which effectively raises your net return versus a taxable brokerage account. See our 529 vs brokerage comparison for the math.
What if my return is lower than 6%?
Lower returns raise the required monthly saving. Re-run with 4-5% to see a conservative plan that is more likely to actually reach the goal.
Can I include scholarships?
This tool models the gross cost. scholarships reduce the real amount you must save, so you can lower the target by expected aid when you have firm numbers.
Is this a guarantee of what college will cost?
No. It is a mathematical projection of your stated assumptions. Real tuition, aid, and investment results will differ.