How much should I save for college?
Start with today's yearly cost: tuition and fees plus housing, food, books and other expenses. The calculator grows that cost by your expected college inflation until your child starts school and adds up every year of college. It then subtracts what your current savings should grow to and works out the monthly amount to save from now until the first tuition bill.
The presets use the College Board's 2025–26 average published tuition and fees: about $4,150 at a public two-year college, $11,950 at a public four-year college for in-state students, $31,880 for out-of-state students and $45,000 at a private nonprofit four-year college. Many families pay less after grants and scholarships.
Why use a 529 plan?
- Tax-free growth – earnings are tax-free when spent on qualified education costs such as tuition, fees, books, and room and board for students enrolled at least half-time.
- State tax breaks – many states give a deduction or credit for contributions to their own plan.
- Flexible use – money can also go toward some K-12 tuition, apprenticeships and, within limits, student loan payments.
- Financial aid – a parent-owned 529 counts as a parent asset, which has a small effect on aid eligibility.
Frequently asked questions
What if my child doesn't go to college?
You can change the beneficiary to another family member, keep the money for later, or withdraw it. Non-qualified withdrawals owe income tax plus a 10% penalty on the earnings only.
Can leftover 529 money go into a Roth IRA?
Yes. Under SECURE 2.0, up to $35,000 over the beneficiary's lifetime can be rolled into their Roth IRA if the 529 has been open at least 15 years, subject to yearly IRA limits.
How much does college cost increase each year?
Published tuition has risen more slowly in recent years, often near or below general inflation. Using 3% to 5% a year gives a cautious estimate.