College Cost Calculator

Estimate the future cost of college and how much you need to save monthly to meet your goal.

College Costs
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Current Savings Plan
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How much will college cost by the time my child gets there, and how much do I need to save each month to cover it? With $35,000 a year today, 5% annual cost growth and ten years to go, the first year alone is $57,011 and four years total $245,726. This page projects that bill, grows your current savings and monthly deposits to enrollment day, and reports the gap along with the extra monthly deposit that would close it.

Inflating the bill, growing the savings, solving for the gap

Cost in college year i = today's annual cost × (1 + inflation)^(years until college + i), counting i from 0. Savings at enrollment = S × (1 + m)^N + D × ((1 + m)^N − 1) ÷ m, where S is current savings, D the monthly deposit, m the annual return ÷ 12 and N the months until enrollment. Gap = total future cost − savings at enrollment − (annual aid × years in college), floored at zero. Extra monthly deposit = gap × m ÷ ((1 + m)^N − 1).

Worked example with the defaults: $35,000 today, 4 years, enrollment in 10 years, 5% inflation, $20,000 saved, $300 a month, 6% return, no aid. The four annual bills are $57,011, $59,862, $62,855 and $65,998, a total of $245,726. Savings grow to $85,551.74 by enrollment. The gap is $160,174.14, and closing it takes another $977.39 a month on top of the $300.

What it leaves out: savings are valued on the first day of college and are not allowed to keep growing while you draw them down, which makes the gap somewhat conservative. Aid is a flat yearly amount that never inflates, and every cost component is assumed to rise at one rate, though tuition, housing and books seldom do. Taxes, financial-aid formulas that count savings, and loans are ignored. If the expected return is exactly 0, the savings formula divides by zero and the page returns invalid numbers, so enter something like 0.01 instead.

How to Use This Calculator

  1. Enter the current annual cost of the type of school you expect, including tuition, housing, books and fees.
  2. Enter the years in college (4 by default) and the years until the first year starts.
  3. Set annual cost growth. 5% is the default; try 3% and 6% to bracket your plan.
  4. Enter annual scholarships or aid if you know them. The amount is subtracted from each year's bill.
  5. Enter current savings, the monthly contribution and an expected annual return.
  6. Press Calculate. A red box shows a shortfall with the extra monthly amount required, and a green box means you are on track.

Frequently Asked Questions

Is 'Savings Needed/mo' my total deposit or an addition?

An addition. It is the extra monthly deposit that closes the gap, on top of whatever is in the Monthly Contribution field. In the default case your total monthly saving would be $1,277.39.

How much does the inflation assumption matter?

A great deal. Cutting growth from 5% to 3% in the default case drops the four-year total from $245,726 to $196,786 and the extra monthly deposit from $977.39 to $678.75.

Are scholarships adjusted for inflation?

No. Enter $5,000 a year and the page subtracts $20,000 across four years at face value. In the default case that lowers the extra deposit to $855.35.

Can I use it for graduate school or a student about to start?

Yes, set years until college to 0 so the first-year cost equals today's cost. With no months left to deposit, the required-deposit figure shows $0 even when there is a shortfall, so read the shortfall number instead.

What return should I assume for a 529 plan?

That depends on the investment mix, and the page treats it as one constant yearly rate. Test a lower one: 4% instead of 6% raises the extra monthly deposit in the default case to $1,166.28.