College Cost Calculator
Estimate future college tuition expenses with education inflation and calculate monthly 529 plan savings targets for your child.
College Cost Estimate
Sticker price is not what most people pay
The published cost of attendance — tuition, fees, housing, books, living costs — is the list price, and the majority of students at private institutions pay considerably less. Net price, after grants and scholarships that do not need repaying, is the only figure worth planning against.US institutions are required to publish a net price calculator, and a well-endowed private university can end up cheaper than a public one for a lower-income family.
Projecting forward, the driver is that education costs have historically risen faster than general inflation. Modelling college at a general inflation rate materially understates the target, so use an education-specific assumption and re-check it periodically. The gap compounds over an eighteen-year savings horizon into a very large number.
On saving, tax-advantaged vehicles such as 529 plans grow untaxed and come out untaxed for qualified expenses, which over a long horizon is worth more than most differences in investment selection. Two planning notes: retirement should generally come first, because education can be borrowed for and retirement cannot; and assets held in a child's own name usually count more heavily against financial aid than the same assets held by a parent.
Frequently asked questions
How to save for child's college tuition?
Using tax-advantaged 529 savings plans with automated monthly contributions helps compound investments for future college fees.
How fast do college costs rise?
Historically tuition has risen faster than general inflation - often 3-5% annually against 2-3% CPI - though the gap has narrowed recently. Projecting 18 years ahead at 5% roughly doubles the cost, which is why savings targets set with general inflation understate the requirement substantially.
What is a 529 plan?
A US tax-advantaged education savings account: contributions are after-tax, growth is tax-free, and withdrawals are tax-free when used for qualified education expenses. Many states add a deduction or credit for contributions. Since 2024, limited unused balances can be rolled into a Roth IRA for the beneficiary, subject to conditions.
Should I save for college or retirement first?
Retirement, in nearly every case. There are loans, grants and scholarships for education and none for retirement, and a shortfall in retirement cannot be borrowed against. The standard advice is to secure the employer match and a solid retirement contribution first, then direct surplus to education savings.