Free 529 College Savings Calculator
Plan for your child's college education with our 529 savings calculator. Calculate how much to save monthly to reach your education funding goals with tax-free growth.
College Savings (529) Calculator
Plan for future college costs
College Planning
529 Benefits: Tax-free growth and withdrawals for qualified education expenses. Many states offer tax deductions.
📚 529 Plan Mastery
💰 What is a 529 Plan?
A 529 is a tax-advantaged savings account for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses (tuition, books, room & board) are also tax-free.
Bonus: Can now be used for K-12 tuition ($10K/year) and student loan repayment ($10K lifetime).
📊 Tax Benefits of 529
Federal: Tax-free growth and withdrawals. State: 30+ states offer tax deductions or credits for contributions ($2K-$10K+ per year). Example: $5K contribution in NY = $340 state tax savings (6.8% rate).
Compounding: $300/month for 18 years at 7% = $122K (vs $64K contributed).
🏛️ State Tax Deductions
Top states: Indiana (20% credit, $1K max), Colorado (full deduction), NY/PA/IL ($10K+ deduction). Some states require using in-state plan. Check your state's rules—free money is free money!
Strategy: Contribute by Dec 31 to claim deduction for current tax year.
💡 Investment Growth
529 plans invest in age-based portfolios (aggressive when young, conservative near college). Historical returns: 6-8% annually. $10K invested at birth grows to $40K+ by age 18 at 7% return.
Tip: Start early—time is your biggest advantage. Even $50/month adds up.
📈 Rising College Costs
College costs rise 5-6% annually (double general inflation). Today's $30K/year public school = $60K/year in 18 years. 4-year degree = $240K+. 529 plans help you keep pace with inflation.
Reality check: You don't need to save 100%. Scholarships, financial aid, and student working can cover 30-50%.
⚠️ Withdrawal Rules
Qualified: Tuition, fees, books, room & board, computer, K-12 tuition, student loans. Non-qualified: 10% penalty + income tax on earnings. Can change beneficiary to another family member penalty-free.
New rule: Can roll up to $35K to beneficiary's Roth IRA (after 15 years).
How to Use This 529 Calculator
Enter Child's Age & College Costs
Input child's current age, years until college, and estimated annual college costs.
Add Current Balance & Contributions
Enter existing 529 balance (if any) and planned monthly contributions.
Review Savings Projection
See if you're on track to meet college costs or need to adjust contributions.
Frequently Asked Questions
What is a 529 college savings plan?
A 529 plan is a tax-advantaged investment account designed for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses (tuition, fees, books, room & board) are also tax-free at the federal level. 30+ states offer additional tax deductions or credits for contributions. You can use 529 funds for college, K-12 tuition ($10K/year), apprenticeship programs, and student loan repayment ($10K lifetime). Anyone can open a 529 for any beneficiary.
How much should I save for college?
It depends on the type of school. Public in-state: ~$30K/year ($120K total). Public out-of-state: ~$50K/year ($200K total). Private: ~$60K/year ($240K total). These costs rise 5-6% annually. You don't need to save 100%—scholarships, financial aid, student working, and loans can cover 30-50%. A good target is 50-70% of projected costs. Use our calculator to set a realistic monthly savings goal based on your child's age and target school type.
What are the tax benefits of a 529 plan?
Federal: Tax-free growth and tax-free withdrawals for qualified expenses. State: 30+ states offer tax deductions or credits for contributions (typically $2K-$10K+ per year). For example, a $5,000 contribution in a state with a 6% tax rate saves you $300 in state taxes. Some states require using their in-state plan to get the deduction. There's no federal deduction for contributions, but the tax-free growth compounds over time. A $10K investment at birth growing at 7% becomes $40K+ by age 18, all tax-free.
Can I use 529 funds for non-college expenses?
Yes, but with limits. Qualified expenses include: college tuition/fees/books/room & board, K-12 tuition (up to $10K/year), apprenticeship programs, and student loan repayment (up to $10K lifetime). Non-qualified withdrawals incur a 10% penalty plus income tax on the earnings portion (not contributions). If your child doesn't go to college, you can: (1) change beneficiary to another family member penalty-free, (2) use for your own education, or (3) roll up to $35K to beneficiary's Roth IRA after 15 years.