Calculate How Much to Save for Higher Education

Learn About Going to College

College is something many of us aspire to, and something many parents, guardians, and family members of future students support by creating college funds to help that student pay for school once the time comes. Whether you are beginning a new college savings account or are looking at ways to maximize an existing one, a Save for College Calculator can be an invaluable tool in giving you an overview of where you are and where you need to be.

To use our calculator and begin your college savings fund, please have the following information:

  1. Current Age: How old the student is today.
  2. Age at Start of College: How old you expect the student to be when they matriculate. For many college students the age will be 18, but consider another age if they plan for a gap year or two.
  3. Years of College: This number may vary based on a few factors. Many community colleges and trade schools offer 1-2 year programs resulting in associate degrees or professional certifications. Universities offer associate degrees as well, but more commonly result in four-year bachelor degrees. If your dependent plans on advanced degrees in areas like medicine or law, you may want to consider the additional cost of graduate degrees or doctoral programs. 
  4. Annual College Cost: The current cost of tuition at your school of choice, including things like room and board, fees, etc. Public versus private institutions are another consideration that can result in a wide range of costs.
  5. College Cost Inflation: The expected inflation rate for college tuition is based on historical data. Between 2001-2021, the average annual tuition increase at public four-year colleges was 5%. 
  6. Current Savings: How much you currently have saved for the student's college fund. Don't worry, if you're at $0, you are taking the right step today by being here.
  7. Monthly College Savings: Your goal amount to save each month toward the student's college fund.
  8. Expected Rate of Return: One of the most popular savings accounts for college is a 529 Plan. These state-sponsored plans grow tax-free and withdrawals are also tax-free as long as funds are used for education-related expenses such as tuition. Better yet, 529 Plans compound, meaning you'll earn interest on your original investment plus interest earned over time. 


How Much to Save for College

Leading financial experts advise that you should plan to save at least one-third of the expected college tuition per child. The remaining balance can come from sources such as financial aid or merit scholarships. Additional factors that can impact the amount you need to save include:

  • School Choice: Tuition amounts can vary significantly depending on which type of school a student hopes to attend. Private institutions are generally more expensive than public, and trade schools or community colleges are traditionally more affordable than their four-year university counterparts. 
  • Number of Students: If you have more than one dependent you will be saving for, the amount you will need to save will increase. Consider starting separate saving plans for each student to keep goals in order and to allow easy access for each student as they matriculate.