529 College Savings Calculator
Project the future value of a 529 college savings plan from an initial deposit, monthly contributions, expected return, and years. Runs in your browser.
Projected 529 balance
- Projected balance
- $122,079
- Total contributed
- $66,800
- Investment growth
- $55,279
Future value with monthly compounding at a constant assumed return. Real returns vary year to year and are not guaranteed; 529 earnings grow tax-free when used for qualified education expenses. Inflation in college costs is not modeled. Informational, not financial advice.
About this tool
A 529 plan is a tax-advantaged account for education savings: contributions grow and can be withdrawn tax-free for qualified education expenses. This calculator projects what a 529 could grow to, using standard future-value math with monthly compounding. It combines two pieces — an initial lump sum that compounds for the full period, and a stream of monthly contributions (an annuity) that each compound from when they are made — at the annual return you assume, over the years until college. It then splits the projected balance into what you contributed versus what investment growth added, which makes the power of starting early and of compounding vivid: the earlier you begin, the larger the growth share becomes. Treat the return as an assumption, not a promise — markets vary year to year, returns are not guaranteed, and this does not model college-cost inflation or fees. Tax benefits depend on using funds for qualified expenses and on your state's plan. It is informational, not financial advice. Everything runs in your browser.
How to use it
- Enter any initial deposit and your planned monthly contribution.
- Set an expected annual return (a long-run stock/bond blend is often modeled around 5–7%).
- Enter the years until college.
- Read the projected balance and how much is contributions versus growth.
Frequently asked questions
- How is the projected balance calculated?
- Future value with monthly compounding: the initial deposit grows as principal × (1 + monthly return)^months, and the monthly contributions grow as an annuity. Their sum is the projected balance; subtracting total contributions gives the growth.
- What return should I assume?
- It is your assumption. Age-based 529 portfolios shift from stocks to bonds over time, so a long-run blended return often modeled is roughly 5–7%, lower as college nears. Lower assumptions are more conservative; the tool lets you test a range.
- What are the tax benefits of a 529?
- Earnings grow federally tax-free and withdrawals are tax-free when used for qualified education expenses (tuition, fees, books, room and board, and up to limits for K-12 and student loans). Many states also offer a deduction or credit for contributions.
- Does this account for college cost inflation?
- No. It projects the savings balance only. College costs have historically risen faster than general inflation, so compare the projected balance to estimated future costs, not today's prices, when judging if you are on track.
- What if I don't use all the money for college?
- Non-qualified withdrawals of earnings incur income tax plus a 10% penalty. Alternatives include changing the beneficiary, using funds for other qualified education, or (subject to rules and limits) rolling unused amounts to a Roth IRA. Check current regulations.
- Is this financial advice?
- No. It is an informational projection. Consult a financial advisor and your state's 529 plan details for decisions.