GrowthCalc › College Savings Calculator
College Savings Calculator: how it works
Education costs have risen faster than general inflation for decades, which makes college savings the one goal where the inflation toggle matters most. A fund that looks enormous in today's dollars may cover half a degree in 18 years' time.
The preset starts at birth with $2,000, adds $300 a month, assumes a 6 percent return compounded monthly (a typical age-based 529 portfolio that gets more conservative as college approaches) over 18 years, and sets inflation to 5 percent to approximate tuition growth. The "in today's money" line tells you what the balance will buy in education terms.
Setting a realistic target
Decide what share of costs you intend to cover: many families aim for one third from savings, one third from income at the time, and one third from aid and loans. Then price the target: four years at an in-state public university currently runs around $100,000 to $120,000 including room and board, private universities two to three times that. Grow that number by tuition inflation to the year your child starts and compare it with the nominal balance in the table.
- Front-load if you can: the first five years of contributions do the most compounding.
- Use the contribution increase field (for example 3 percent a year) to mirror salary growth.
- Grandparent contributions can go straight into the initial amount or a second scenario.
Return assumptions change with age
Age-based portfolios start equity-heavy and shift to bonds and cash in the teenage years, so a single return figure over 18 years is a simplification. Six percent is a reasonable blended average; run 4 and 8 percent as well to see the range. GrowthCalc Pro's scenario comparison puts all three on one chart.
Tax treatment of education accounts varies by country and state (529 plans in the US, Junior ISAs in the UK, RESPs in Canada) and is not modelled here. This page is for planning and education, not personal financial advice.
Frequently asked questions
How much should I save per month for college?
Saving $300 a month from birth at 6 percent gives roughly $115,000 at 18. Use GrowthCalc Pro's goal mode with your own target and start age to get the exact monthly figure.
What inflation rate should I use for tuition?
Tuition has historically grown 4 to 6 percent a year in the US, above general inflation. Five percent is a common planning assumption.
Is it too late to start if my child is 10?
No, but the mix changes: with eight years left, contributions matter more than growth, and the portfolio should be more conservative. Set years to 8 and compare the contributions and interest columns.
Does the calculator handle lump sums later on?
Not as one-off events. Approximate them by raising the initial amount or by saving a second scenario from the year the lump sum arrives.
Looking for the full guide, tips and the complete FAQ? Read the main GrowthCalc page.