College 529 Savings Calculator
A 529 plan lets you save and invest for education expenses with tax-advantaged growth. This calculator projects your balance at college start based on your current savings, monthly contributions, and expected return. Use it to see if you're on track for tuition goals.
How it works
The calculator combines two future-value formulas. Your existing balance grows by compounding: FV = P × (1 + r)^n, where P is the current balance, r is the monthly return rate, and n is the number of months.
Your monthly contributions are treated as an ordinary annuity: FV = PMT × [((1 + r)^n − 1) / r]. Adding both results gives the projected 529 balance when college begins.
Returns compound monthly using your annual rate divided by 12. The difference between projected balance and total dollars contributed is your investment growth.
Tips
Start early — even small monthly amounts benefit hugely from decades of compounding.
Many states offer a tax deduction or credit for 529 contributions, and qualified withdrawals for education are federally tax-free.
Reassess your expected return as college nears; many plans shift to conservative investments closer to enrollment to protect savings.
FAQ
What is a 529 plan?
A 529 is a tax-advantaged savings account designed for education costs. Investments grow tax-free, and withdrawals for qualified expenses like tuition, fees, and books are not taxed federally.
What return should I assume?
Many people use 5–7% for a diversified portfolio over the long term. More conservative age-based portfolios near college may return less. This tool is an estimate, not a guarantee.
Can I use 529 funds for non-college expenses?
Yes, but non-qualified withdrawals of earnings face income tax plus a 10% penalty. Recent rules also allow limited rollovers to a Roth IRA and use for K-12 and apprenticeships.