Project the future cost of college accounting for tuition inflation, and find how much you need to save each month to cover it. Plan ahead for a 529 or education savings goal.
Future cost & savings needed
College costs have historically risen faster than general inflation — often 4%–6% per year. That means a degree that costs $25,000 a year today could cost far more by the time a young child enrolls. This calculator projects the total future cost across all years of college using your assumed tuition inflation, then subtracts the projected growth of your current savings and calculates the monthly amount you'd need to save (in a 529 or similar account) to close the gap by enrollment.
For example, $25,000/year today at 5% inflation, starting in 10 years for a 4-year degree, totals well over $130,000 in future dollars. With $10,000 already saved growing at 6%, you'd still need to save a few hundred dollars a month to fully fund it. Starting early dramatically lowers the monthly amount, because your contributions have more time to compound.
College costs typically rise 4%–6%/year — faster than overall inflation. Project realistically so you don't undersave.
Tax-advantaged 529 accounts let education savings grow tax-free when used for qualified expenses — ideal for this goal.
The earlier you start, the more compounding does the work and the smaller your required monthly contribution.
Projecting college cost means compounding today's price at education inflation, which has historically run well above general CPI — around 5% a year against roughly 2.5%. That gap is the entire reason saving early matters so much: the target is a moving one that accelerates away. The projection then has to be matched against a savings plan, and because the money is spent over four years rather than all at once, some of the balance keeps compounding while the first years are being paid. The sticker price is also rarely what families pay — institutional aid and merit discounting reduce it substantially at most private colleges.
Future annual cost = Current cost × (1 + education inflation)^yearsTotal four-year cost = sum of four consecutive inflated yearsRequired monthly saving = FV target ÷ [((1 + r)^n − 1) ÷ r]where:
Assumptions: Sticker price projections. Actual net price depends on aid, which is means-tested and institution-specific. 529 plan growth is tax-free for qualified education expenses, which materially improves the arithmetic below.
Project the cost 18 years out, then find the monthly saving that meets it.
Result$72,199 for the first year alone — $300/month builds $116,206
The gap is the honest finding: fully funding a projected $311,185 would need about $800 a month from birth. Most families close it with a combination of savings, current income during the college years, aid and some borrowing — which is why the projection is a planning tool rather than a savings target to hit exactly.