About the College Savings Calculator
Plan how much to save each month for your children's college. Enter today's tuition and room and board, the age each child is now and the age they will start, how fast college costs rise, what you have saved and what you add each month, and the calculator works out the total cost and the monthly savings needed.
It handles up to four children saving from the same account, shows whether your plan is on track, and gives the balance and expenses for every year until the last child finishes a four-year program.
How it works
First the cost of college is projected. One year's tuition plus room and board grows each year with education cost inflation, so a $65,470 year today costs $85,423.50 nine years from now at 3%. Each child attends four years, and every school year is paid at the end of that year, so the four years together come to $357,380.06.
Then your savings are grown year by year. The balance earns the rate of return, and each month's contribution goes in at the start of the month, earning the monthly rate that compounds to the yearly one: $250 a month adds $3,112.57 in the first year at 7%. Contributions continue while the children are in college. If the balance falls below $0, that is money you would have to borrow, and it costs the same rate.
Finally the calculator finds the monthly amount that leaves the account at exactly $0 after the last school year, rounded up to the whole dollar. With the example above that is $1,579 a month, and it tells you whether to increase, keep or decrease what you save now.
Assumptions and limits
- Every child attends a four-year program; a longer program costs more.
- College costs and the rate of return stay the same each year. Try a cautious return and a higher inflation rate as well.
- Taxes, fees and financial aid are not counted; scholarships or grants lower the amount you need to save.
Worked examples
One child, nine years away
Tuition of $45,000 and room and board of $20,470 a year, 3% cost inflation and a 7% return: four years cost $357,380.06 and you need $1,579 a month.
Starting school this year
The same costs for a child starting now come to $273,902.06, and $5,487 a month would be needed during the four years.
Two children
Adding a second child of 5 starting at 19, with $21,000 a year in costs, brings the total to $490,270.40 over 18 years and $1,659 a month.
How to use the College Savings Calculator
- Describe your plan. Cost inflation, rate of return, current savings and monthly contributions.
- Add each child. Age now, age to start, tuition and room and board for one year.
- Read your plan. The total cost, the monthly savings needed and the balance by year.
Frequently asked questions
How much should I save each month for college?
It depends on the cost of the school, the years until your child starts and the return on your savings. For one year of $65,470 today, nine years away, 3% cost inflation and a 7% return, you need about $1,579 a month to cover four years.
How fast do college costs rise?
College costs have often risen faster than general prices, so many families plan with 3% to 5% a year. At 3%, a year that costs $65,470 today costs $85,423.50 in nine years; the calculator lets you choose any rate from 0% to 20%.
Why does the monthly amount keep going during college?
Most families keep saving while their children study, so the calculator assumes monthly contributions continue until the last school year ends. That spreads the cost over more months and lowers the amount needed each month compared with stopping when college starts.
What does a negative balance mean?
A balance below zero means your savings ran out before the school bills did. That money would have to come from loans or other income, and the calculator charges it the same rate of return, as interest you would pay on borrowing.
Can I plan for more than one child?
Yes. Add up to four children, each with their own age, starting age, tuition and room and board. Their costs are paid from one savings account, and the table shows the cost for each child and the combined balance for every year.
This tool runs entirely in your browser. What you enter or upload stays on your device and is never sent to our servers.