College cost calculator
Estimate future college costs, build a savings plan and see how much starting early matters.
Child and college
College type
Savings and returns
529 plans historically average 5-7%
College costs rise about 5% per year
Grants, scholarships and other aid expected per year
Key insights
- Start early advantage
- Starting to save at birth vs. age 10 can mean over 2x more savings thanks to compound growth. Even small monthly contributions add up significantly over 18 years.
- 529 plan benefits
- 529 plans offer tax-free growth and tax-free withdrawals for qualified education expenses. Many states provide additional tax deductions on contributions.
- Financial aid impact
- Over 85% of undergraduates receive some aid. Parent-owned 529 assets have minimal impact on eligibility, with only 5.64% counted in the expected family contribution.
Frequently asked questions
- What is a 529 plan and how does it help with college savings?
- A 529 plan is a tax-advantaged savings plan designed for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses (tuition, room and board, books, supplies) are also tax-free at the federal level. Many states offer additional tax deductions or credits for contributions. There are two types: savings plans (investment accounts) and prepaid tuition plans.
- How much should I save each month for college?
- The amount depends on your child's age, the type of college you're targeting, and how much of the cost you want to cover. A common guideline is to aim to save about one-third of projected costs, with the rest covered by financial aid, scholarships, and current income at the time. Starting early is key: even $200-300 per month from birth can grow to cover a significant portion of in-state public university costs.
- How does financial aid affect my savings strategy?
- Financial aid can come in the form of grants, scholarships, work-study, and loans. The amount you receive depends on your Expected Family Contribution (EFC), the school's cost of attendance, and available funding. Having savings in a 529 plan has a relatively low impact on financial aid eligibility: only about 5.64% of parent-owned 529 assets are counted in the EFC formula, compared to 20% of student-owned assets.
- Why do college costs rise faster than general inflation?
- College costs have historically increased at 5-8% per year, well above the general inflation rate of 2-3%. This is driven by factors including rising administrative costs, expanded student services, facility upgrades, technology investments, reduced state funding for public institutions, and increased demand for higher education. This is why it's crucial to factor in education-specific inflation when planning.
- What other savings options exist besides 529 plans?
- Beyond 529 plans, you can consider Coverdell Education Savings Accounts (ESAs) with a $2,000 annual contribution limit, custodial accounts (UGMA/UTMA), Roth IRAs (contributions can be withdrawn penalty-free for education), taxable brokerage accounts for flexibility, and U.S. Savings Bonds (Series I and EE). Each has different tax implications and impact on financial aid eligibility.
Important disclaimer
This calculator is for educational and planning purposes only. Projections are estimates based on current average costs and assumed inflation rates. Actual costs will vary by institution.
Investment returns: Past performance does not guarantee future results. The default 6% return is based on typical 529 plan performance but actual returns may vary.
Financial aid: Aid amounts vary widely based on income, assets, family size and school policies. Use the FAFSA and CSS Profile for personalized estimates.
Professional advice: Consider consulting with a financial advisor or college planning specialist for personalized education savings strategies.
By the numbers
What the data says
- September 2025
$1.67 trillion
Federal student loan debt outstanding
Held by about 43 million borrowers
Source: US Department of Education, Federal Student Aid portfolio - 2025 to 2026 academic year
$11,950
Average published in-state tuition and fees at public four-year colleges
Private nonprofit four-year colleges average $45,000
Source: College Board, Trends in College Pricing 2025 - September 2025
3.0%
Consumer prices rose over the previous 12 months
Food up 3.1%, energy up 2.8%
Source: Bureau of Labor Statistics, Consumer Price Index
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
Build your college savings plan
Warren AI can help you create a personalized education savings strategy, compare 529 plans and optimize your financial aid eligibility.