529 Plan Savings Calculator: Estimate Your College Goal for 2026
Saving for a child's education is a marathon, not a sprint. A 529 Plan is the most tax-efficient way for American families to build a college fund. With the average cost of a four-year private degree projected to exceed $250,000 for children born today, starting early is no longer optional—it's essential. Our 529 Plan Savings Calculator helps you project future tuition costs and determines exactly how much you need to save each month to graduate debt-free. Whether you're planning for public in-state tuition or a private university, this tool accounts for skyrocketing college costs and the tax-free growth benefits that make 529s so popular.
Why Save in a 529 Plan?
A 529 plan is a state-sponsored investment account that offers unparalleled tax advantages for education savings. In 2026, these plans are more flexible than ever.
- Tax-Free Growth: Your investments grow without being taxed by the IRS.
- Tax-Free Withdrawals: As long as the money is used for "Qualified Higher Education Expenses" (tuition, room & board, books), you pay $0 in federal taxes.
- State Tax Benefits: Many states offer a tax deduction or credit for your 529 contributions.
- Roth IRA Rollover: Under the latest SECURE 2.0 rules, up to $35,000 of unused 529 funds can be rolled over into a Roth IRA for the beneficiary (subject to lifetime limits and account age).
2026 Average College Costs & Inflation
To provide an accurate estimate, our calculator uses the most recent 2025-2026 academic year data from the College Board.
| School Type | Average Annual Cost (2026) | Est. 4-Year Total (with inflation) |
|---|---|---|
| Public 4-Year (In-State) | $25,850 | ~$112,000 |
| Public 4-Year (Out-of-State) | $45,780 | ~$198,000 |
| Private Nonprofit 4-Year | $60,920 | ~$264,000 |
Note: Costs include tuition, fees, and room & board.
The 'Superfunding' Strategy for 2026
If you have a lump sum of cash (perhaps from a bonus or inheritance), you can "superfund" a 529 plan. This allows you to treat a large contribution as if it were spread over five years for gift-tax purposes.
- In 2026, the annual gift tax exclusion is $19,000.
- Individuals can contribute up to $95,000 in a single year.
- Married Couples can contribute up to $180,000 in a single year.
This jumpstarts the power of compounding, potentially adding tens of thousands of dollars to the final balance compared to monthly contributions.
How the Calculator Works
Our calculator accounts for two moving targets: the inflation of college costs and the compounded growth of your investments.
- Future College Costs: We calculate the cost for each year of college, as tuition continues to inflate even while the student is enrolled.
- Projected Savings: We calculate the future value of your current 529 balance and your monthly contributions, accounting for compound growth.
- Gap Analysis: We compare your projected savings to the total future cost and show you if you're on track or need to increase contributions.
How We Calculate: The Math Behind the Projections
Our calculator uses standard financial formulas to project future college costs and savings growth. Here's exactly how each calculation works:
1. Total Future Cost of College
We calculate the cost for each year of college separately, accounting for inflation both before college starts and during college years:
Example: If college starts in 13 years and costs $25,850 today with 4% inflation, Year 1 of college will cost $25,850 × (1.04)^13 = $42,800. Year 2 will cost $25,850 × (1.04)^14 = $44,512, and so on.
The total future cost is the sum of all college years: Total = Σ(Cost for Year 1 through Year N)
2. Future Value of Current Savings
We calculate how much your current 529 balance will grow with compound interest:
Example: If you have $5,000 today, expect 6.5% annual return, and college starts in 13 years: FV = $5,000 × (1.065)^13 = $11,400.
3. Future Value of Monthly Contributions
We use the annuity formula to calculate the future value of your monthly contributions:
Where:
- PMT = Monthly contribution amount
- r = Monthly interest rate (Annual Rate ÷ 12)
- n = Number of months (Years Until College × 12)
Example: If you contribute $200/month, expect 6.5% annual return (0.5417% monthly), and college starts in 13 years (156 months): FV = $200 × [((1.005417)^156 - 1) / 0.005417] = $200 × 256.7 = $51,340.
4. Total Projected Savings
We add the future value of your current balance and the future value of your monthly contributions:
5. Gap Analysis & Required Monthly Contribution
We calculate the gap between your projected savings and total future cost:
If there's a shortfall (negative gap), we calculate the additional monthly contribution needed using the sinking fund formula:
This tells you exactly how much more you need to save each month to meet your goal.
Important Assumptions: The calculator assumes monthly contributions are made at the end of each month, compounds interest monthly, and uses the inflation rate you specify for college cost projections. Actual results may vary based on market performance and actual college costs.