Project a 529 balance against the future cost of a degree, and see the monthly saving needed to close the gap.
Understanding the 529 calculation
A 529 plan grows tax-free as long as the money is spent on qualified education costs. The challenge is that tuition has historically risen faster than general inflation, so the target moves while you save.
This calculator projects both sides — your balance and the cost of the degree — and reports the shortfall or surplus, plus the monthly contribution that would fully fund it.
Worked example
On the values this calculator opens with, the 529 balance at college is $88,052.09. Underneath, Years to save comes out at 13 years and Total contributed at $54,800. Change any field and every figure updates as you type.
Getting your answer
- Enter your child’s age now and when college starts.
- Enter your current balance and monthly contribution.
- Set the current annual cost and education inflation rate.
Formula reference
balance = current × (1+r)ᴺ + monthly × ((1+r)ᴺ − 1) ÷ r
cost = Σ current cost × (1 + education inflation)^year
FAQ
What can 529 money be spent on?
Tuition, fees, books, supplies and room and board at eligible institutions, plus limited K-12 tuition and student loan repayment.
What if my child does not go to college?
You can change the beneficiary to another family member, or withdraw the money and pay tax plus a penalty on the earnings portion.
What education inflation rate should I use?
Around 5% is a common planning assumption, though it varies widely between public and private institutions.