College Savings 529 Calculator 2025 – Plan for Tuition
Estimate future college costs and 529 plan growth. Calculate how much to save monthly for your child's education in 2025.
College Savings 529 Calculator 2025 – Plan for Tuition
Introduction
With tuition costs rising faster than inflation, saving for college is a daunting challenge for many parents. A College Savings 529 Calculator helps you estimate the future cost of education and determine how much you need to save each month to reach your goal.
In this guide, we'll cover:
- How 529 plans work
- Projecting future tuition costs
- The power of compound interest in education savings
- 2025 contribution limits and rules
Inputs
- Child's Age: Years until college starts.
- Current Savings: Amount already saved in 529 or other accounts.
- Monthly Contribution: How much you plan to save.
- College Type: Public In-State, Public Out-of-State, or Private.
- Expected Return: Annual growth rate of investments (typically 6-8%).
The Cost of College in 2025 and Beyond
Tuition inflation averages 3-5% per year.
- Public In-State: ~$25,000/year (Tuition + Room/Board)
- Private: ~$60,000+/year
Projected 4-Year Cost (in 10 years):
- Public In-State: ~$135,000
- Private: ~$320,000
Why Use a 529 Plan?
A 529 Plan is a tax-advantaged savings account designed for education costs.
- Tax-Free Growth: Earnings grow tax-free.
- Tax-Free Withdrawals: No tax when used for qualified education expenses (tuition, books, room & board).
- State Tax Benefits: Many states offer tax deductions for contributions.
How Much Should You Save?
A common rule of thumb is the 1/3 Rule:
- Save 1/3 of the projected cost.
- Pay 1/3 from current income during college years.
- Cover 1/3 with student loans or scholarships.
Example: To save $50,000 over 10 years (assuming 7% return):
- You need to contribute roughly $300/month.
FAQ
Q: What if my child doesn't go to college? A: You can change the beneficiary to another family member, use up to $35,000 for a Roth IRA rollover (subject to rules), or withdraw with a penalty (10% on earnings only).
Q: Does a 529 plan affect financial aid? A: Yes, but minimally. It's considered a parental asset, assessed at a maximum rate of 5.64% on the FAFSA, which is much better than student assets (20%).
Related Tools
- Compound Interest Calculator: /calculator/07-compound-interest-calculator
- Student Loan Calculator: /calculator/10-student-loan-repayment-calculator
Conclusion
Time is your best asset when saving for college. Starting early, even with small amounts, allows compound interest to do the heavy lifting. Use the College Savings 529 Calculator to set a realistic target and secure your child's educational future.