🎓 College Savings Goal Calculator

Estimate the future value of monthly college savings contributions, based on a fixed monthly amount, expected annual return, and number of years until college.

How the projection is worked out

It is the future value of an ordinary annuity - a fixed payment at the end of every month, compounded monthly at one twelfth of the annual rate:

r  = annual return / 100 / 12
n  = years × 12
FV = payment × ((1 + r)^n - 1) / r

At $200 a month for 18 years at 6 percent, r is 0.005 and n is 216. That gives $77,471, of which $43,200 is money you paid in and $34,271 is growth. The rate entered is nominal: 6 percent charged monthly works out at 6.17 percent effective for the year.

Reading the number properly

Because the multiplier is linear in the payment, you can scale it in your head - 18 years at 6 percent turns every $1 a month into $387:

MonthlyAfter 18 years at 6%
$100$38,735
$200$77,471
$300$116,206
$500$193,677

The return assumption does the rest of the work: the same $200 comes to $63,118 at 4 percent and $96,017 at 8 percent. Age-based 529 portfolios move into bonds as the child gets older, so a single fixed rate flatters the last few years. There is no field for a starting balance, an annual increase or fees, so add a lump sum you already hold separately.

The answer is in future dollars. If college costs rise about 5 percent a year, a course billing $30,000 a year today bills roughly $72,000 by the time an infant enrols - so compare the projection against an inflated cost, not today's sticker price.

Frequently asked questions

How much should I save each month for college?

Work backwards from a target: divide it by 387 for an 18-year run at 6 percent. A $100,000 goal needs about $258 a month, and a shorter run needs proportionally more.

Is 6 percent a realistic return for a 529 plan?

It is a common middle assumption for a stock-heavy portfolio held for a long time, before fees. Age-based options taper toward bonds near enrolment, which lowers the average return over the full 18 years.

Does this include tuition inflation?

No. It projects savings only. Education costs have generally risen faster than consumer prices, so a projection that looks sufficient today may cover less of the bill than it appears to.