529 College Savings Calculator
Project college costs, your 529 balance at enrolment, the shortfall, the monthly contribution needed, the tax-free growth advantage, state deduction value and the $19,000 gift-tax exclusion rules.
| Future cost of college | — |
|---|---|
| Your target (share to cover) | — |
| Projected 529 balance at college start | — |
| Shortfall / surplus | — |
| Monthly contribution needed for the full target | — |
| Of the balance, growth vs contributions | — |
| Tax-free growth benefit vs a taxable account | — |
| State deduction value this year | — |
| Gift-tax note | — |
In short
A 529 plan grows and pays out tax-free for tuition, fees, room and board, books, computers, up to $10,000 a year of K-12 tuition and $10,000 of student loans; non-qualified withdrawals pay tax plus 10% on earnings. Contributions count as gifts — $19,000 per donor per child in 2026, or $95,000 using the 5-year election — and about 30 states give a deduction. Up to $35,000 of leftovers can roll to the child's Roth IRA after 15 years.
Who this is for: US parents and grandparents planning college savings.
529 plans in brief
- Tax treatment: contributions are after-tax federally (about 30 states give a deduction or credit); growth and qualified withdrawals are tax-free.
- Costs to plan for: published 2025–26 averages are roughly $25,000–30,000 a year at public in-state universities and $60,000+ at private ones, all-in; costs have grown about 4–5% a year for decades.
- How much to save: many families aim to cover a third to three-quarters, with the rest from income during college, scholarships and loans. The calculator lets you pick the share.
- Gift rules: $19,000 per donor per beneficiary a year in 2026 is free of gift-tax reporting; the 5-year election lets you front-load $95,000 ($190,000 per couple).
- Flexibility: change the beneficiary to a sibling, use up to $10,000 a year for K-12 tuition, or roll up to $35,000 into the child's Roth IRA if the plan is 15 years old.
- Any state's plan can be used for any accredited school nationwide (and many abroad); pick a low-fee plan, favouring your own state only if it gives a tax break.
See also: Gift & Estate Tax Calculator 2026, Savings Goal Calculator.
Assumptions
- Each college year's cost = today's cost × (1 + growth)^(years until that year).
- Balance grows monthly at the return; taxable comparison grows at 75% of the return.
- Gift exclusion $19,000 per donor per beneficiary (2026); state deduction value = min(contributions, cap) × rate.
Worked example
Future cost about $268,800 for four years (starting at $62,400 a year); target 75% = $201,600. The 529 reaches about $126,700 — short by $74,900 (63% of target). Covering the full target needs about $661 a month. Growth supplies $49,700 of the balance; the tax-free wrapper is worth roughly $15,600 over a taxable account. A couple could gift $38,000 a year without a gift-tax return.
Frequently asked questions
How much should I save in a 529 per month?
For three-quarters of a public university's cost from birth, roughly $400–600 a month at a 6% return; from age 8, about double. Enter your school and share to see.
What can 529 money be used for?
Tuition, fees, books, supplies, computers, room and board at eligible schools, up to $10,000 a year of K-12 tuition, apprenticeship costs and $10,000 of student loans; non-qualified use costs tax and a 10% penalty on earnings.
Is there a contribution limit?
No annual federal limit — only state plan maximums (typically $300,000–550,000 total) and gift-tax reporting above $19,000 per donor per year.
What if my child gets a scholarship?
You can withdraw up to the scholarship amount penalty-free (earnings still taxed), change the beneficiary, or roll up to $35,000 into their Roth IRA.
Does a 529 hurt financial aid?
A parent-owned 529 is assessed at up to 5.64% of its value on the FAFSA — far less than student assets — and grandparent-owned plans are no longer counted at all.
Can I use a 529 for schools abroad?
Yes, at hundreds of foreign institutions eligible for US federal student aid.
Related calculators
See all United States calculators → · All free online calculators
Found an error? Report it — tell us the inputs, the result you got, what you expected and the rule or source. Confirmed corrections are published within a week.
Ready to build your next digital solution?
Send the brief and you get a scoped response with approach, milestones and a fixed price range. Not a sales call.
A 30-minute call with the engineer who would run your project
Within 2 business daysA written scope: approach, module breakdown, milestones, fixed price range
Within 5 business daysYou decide. No retainer, no obligation, and the scope document is yours to keep either way
Your timelineSend your brief
Three fields to start. Add project details if you have them.