Glass jar of coins beside a small plant - college savings calculator

College Savings Calculator

Enter your current savings, monthly deposit, expected return, years until college and a target cost. Saving $250 a month for 12 years at 6 percent reaches $62,791.29.

How the college savings calculator works

Saving for college is a future value problem: your current balance and monthly deposits grow at an assumed return until the first tuition bill. This calculator projects the balance, compares it with your goal and works out the monthly deposit that would reach it exactly.

The formulas

Balance = Savings x (1 + i)^N + Deposit x ((1 + i)^N – 1) / i
Deposit needed = (Goal – Savings x (1 + i)^N) x i / ((1 + i)^N – 1)
i = annual return / 12, N = years x 12

Example: With $5,000 saved and $250 a month for 12 years at 6 percent, the balance reaches $62,791.29, which is 52.33% of a $120,000 goal, leaving a gap of $57,208.71. Reaching the goal would take about $522.23 a month.

Notes and limits

  • The goal is your own estimate. Costs vary by school and change over time.
  • Investment returns are not guaranteed. Taxes and account fees are not included.
  • Education savings accounts have their own rules. Check them with a qualified advisor.

Figures are estimates for planning and are not financial advice. Check your own agreement or statement for exact terms.

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    Frequently asked questions

    How much should I save for college?

    Start from a target cost and work backward. The calculator shows the monthly deposit needed, $522.23 in the default example.

    What return should I assume?

    Use a conservative figure and test a few. Returns vary and are not guaranteed.

    Does it include inflation?

    Not directly. Raise your goal to account for rising costs.

    Is the deposit made at the end of the month?

    Yes. The formula assumes end-of-month deposits.

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