Project total college costs with tuition inflation and how much to save per month.
College costs have historically risen faster than general inflation — roughly 5–6% per year for private four-year colleges. This calculator projects costs forward at the rate you choose, then back-solves for the monthly contribution needed. It accounts for existing savings (which grow at the investment return), known scholarships, and the number of years until enrollment.
Inflated annual cost
Future cost = Current cost × (1 + inflation rate)^years
Required monthly saving
PMT = Shortfall × r / [1 − (1+r)^−n]
A 529 is a tax-advantaged savings plan for education expenses. Contributions are made with after-tax dollars, grow tax-free, and withdrawals for qualified expenses are also tax-free. Many states offer a state income tax deduction for contributions to their own 529 plan.
Private four-year college costs have historically increased about 5–6% annually. Public in-state costs have risen faster, sometimes 8–10% in recent years but more volatile. Conservative planners use 6%; optimistic planners use 4%. The default of 5% is a reasonable middle ground.
Your annual cost input should include whatever you expect to pay: tuition, fees, room, board, books, and personal expenses. The College Board's 'Trends in College Pricing' publishes all-in averages by school type each year.
Options include starting earlier (more time = more growth), increasing the investment return by choosing a more aggressive 529 portfolio, planning for loans, work-study, or seeking more aid. Filling part of the gap with student loans may be rational if the education yield justifies it.