# How much college savings do I need?

Works out how much to save each month for college: the share of rising college costs you want to cover, what you have saved, and a steady return, with the lump sum that would do it today.

- Page: https://www.acalculator.org/finance/college-savings-calculator
- JSON spec: https://www.acalculator.org/finance/college-savings-calculator.json
- Version: ba9f252a07b8

## Default answer

Example with the default inputs (Child’s age now 5, College starts at age 18, Years of college 4, Yearly college cost today $11,950.00, College costs rise each year by 3%, Share of the cost to save for 100%, Saved so far $5,000.00, Expected yearly return 5%): Save $270.43 a month to have $68,215.66 when college starts, enough for 100% of the cost.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| age | Child’s age now | The child’s age today, in whole years. |
| start | College starts at age | The child’s age when college starts. |
| years | Years of college | How many years of college to pay for. |
| cost | Yearly college cost today | What one year of college costs at today’s prices: tuition and fees, plus housing and books if you plan to pay them. |
| costgrowth | College costs rise each year by | The yearly rise in the cost of college, from today until the last college year. |
| share | Share of the cost to save for | How much of each college year’s cost the savings should pay; the rest comes from elsewhere. |
| saved | Saved so far | What is already saved for college today. |
| rate | Expected yearly return | The yearly return on the savings, the same every year until the last college year. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| monthly | Save each month | The monthly saving, until college starts, that pays the chosen share of every college year. |
| goal | Needed when college starts | The savings needed on the day college starts, before the first year is paid. |
| lump | Or once, today | A single amount added today, on top of what is saved, that meets the goal with no monthly saving. |
| totalCost | College will cost | Every college year’s full cost added up, at the prices of the year it is due. |
| covered | Your savings pay | The chosen share of every college year’s cost, added up. |
| deposits | You put in | What is saved now plus every monthly saving. |
| left | Left after college | The balance after the last college year is paid. |

## Method

Cost of college year j = cost × (1 + rise)^(years until college + j). Goal at college start = Σ share × cost_j ÷ (1 + r)^j. Monthly saving = (goal − saved × (1 + r)^years) × g ÷ ((1 + g)^(12 × years) − 1), with g = (1 + r)^(1/12) − 1.

## Assumptions

- Savings are added at the end of each month until college starts; each college year is paid at its start.
- The return and the rise in college costs stay the same every year; taxes and fees are not taken off.

## Worked examples

1. age = 14, start = 18, years = 4, cost = $10,000.00, costgrowth = 0%, share = 100%, saved = $12,000.00, rate = 0% gives goal = $40,000.00, monthly = $583.33, lump = $28,000.00, deposits = $40,000.00, left = $0.00. Source: IRS, 529 Plans: Questions and Answers (earnings grow free of federal tax when used for tuition, fees, books, room and board), https://www.irs.gov/newsroom/529-plans-questions-and-answers.
2. age = 5, start = 18, years = 4, cost = $11,950.00, costgrowth = 3%, share = 100%, saved = $5,000.00, rate = 5% gives goal = $68,215.66, monthly = $270.43, lump = $31,176.22, totalCost = $73,418.38, deposits = $47,187.28. Source: College Board, Trends in College Pricing 2025 Highlights: 2025-26 average published tuition and fees $11,950 public four-year in-state (+$340), $31,880 out-of-state, $45,000 private nonprofit four-year, https://research.collegeboard.org/trends/college-pricing/highlights.
3. age = 0, start = 18, years = 4, cost = $45,000.00, costgrowth = 3%, share = 50%, saved = $0.00, rate = 6% gives goal = $146,836.26, monthly = $385.44, lump = $51,443.17, totalCost = $320,505.52, covered = $160,252.76. Source: College Board, Trends in College Pricing 2025 Highlights: 2025-26 average published tuition and fees $11,950 public four-year in-state (+$340), $31,880 out-of-state, $45,000 private nonprofit four-year, https://research.collegeboard.org/trends/college-pricing/highlights.
4. age = 10, start = 18, years = 4, cost = $10,000.00, costgrowth = 0%, share = 100%, saved = $100,000.00, rate = 4% gives monthly = $0.00, lump = $0.00, goal = $37,750.91, left = $115,940.00. Source: IRS, 529 Plans: Questions and Answers (earnings grow free of federal tax when used for tuition, fees, books, room and board), https://www.irs.gov/newsroom/529-plans-questions-and-answers.

## FAQ

### How much should I save each month for college?

Enough that the savings, with their growth, pay your share of each college year when it comes due. For a 5-year-old, public in-state tuition and fees of $11,950 a year rising 3% a year, $5,000 saved and a 5% return, that is about $270 a month until age 18.

### What does college cost?

The College Board puts average 2025-26 published tuition and fees at $11,950 for a public four-year college in state, $31,880 out of state and $45,000 at a private nonprofit four-year college. Housing, food and books come on top; add them to the yearly cost if you plan to pay them.

### Do I have to save for the whole cost?

No. Set the share to save for. Many families plan to pay part from savings and the rest from income, grants, scholarships or loans. Starting from $0 saved, saving for 50% of the cost needs half the monthly amount of saving for 100%; with money already saved, it needs less than half.

### Why does the goal at college start come out less than the total cost?

Only the first year is due on the first day. The money for later years keeps earning a return while it waits, so less is needed up front. At a 0% return the goal equals the total.

### Should I save in a 529 plan?

A 529 plan is one common choice. The IRS says its earnings grow free of federal tax when spent on qualified education costs such as tuition, fees, books, room and board. The 529 calculator projects a 529 plan you already pay into.

### What return and cost rise should I use?

Neither is known in advance. College Board prices rose $340 (about 2.9%) at public four-year colleges from 2024-25 to 2025-26. Try a few returns to see the range; a lower return needs more saving.

## Sources

- College Board, Trends in College Pricing 2025 Highlights: average published tuition and fees in 2025-26 of $11,950 at public four-year in-state colleges (up $340), $31,880 out-of-state and $45,000 at private nonprofit four-year colleges. Retrieved 2026-10-02. https://research.collegeboard.org/trends/college-pricing/highlights
- IRS, 529 Plans: Questions and Answers: a 529 plan is a tax-advantaged education savings plan run by a state or educational institution; earnings are not taxed federally when used for qualified costs such as tuition, fees, books, room and board. Retrieved 2026-10-02. https://www.irs.gov/newsroom/529-plans-questions-and-answers