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College Savings Calculator

Saving for a child's education requires a long-term plan. And, like saving for retirement, the earlier you start, the better. Our college savings calculator helps you figure out how much you'll need to save for your child's education and whether you're on track to meet your goals.

College savings plan

In these calculations the education cost of inflation is 0.67%
Total savings expense: $267,894

You will exceed your savings goal

You only need to make a monthly contribution of $2,604 to meet your goal

College savings goal
$267,894
Extra savings
$21,128

Balance and Expenses by Year

Line chart with 2 lines.
The chart has 1 X axis displaying Year number.
The chart has 1 Y axis displaying Thousands of dollars. Data ranges from 0 to 124324.51882069289.
End of interactive chart.

Total Costs by Child

Bar chart with 1 bar.
The chart has 1 X axis displaying Education cost.
The chart has 1 Y axis displaying Thousands of dollars. Data ranges from 267893.5437965794 to 267893.5437965794.
End of interactive chart.

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Why use Bankrate's college savings calculator

Our calculator accounts for several factors that affect your college savings strategy:

  • Up-to-date college cost data: Uses the latest figures from the 2024-2025 academic year.
  • Education inflation rate: Incorporates the 0.67% average education cost increase over the past decade.
  • Investment return projections: Helps you see how your savings can grow based on different investment strategies.
  • Multiple children planning: Allows you to calculate savings needs for multiple children with different timelines.

How to use our calculator

  • Enter your current college savings amount.
  • Input your planned monthly contribution.
  • Set your expected rate of return on investments.
  • Review your projected savings and shortfall or surplus.
  • Adjust your inputs to see how changes affect your outcome.

Understanding college costs in 2025

Current average annual costs for different institution types (tuition, fees, room and board):

Institution type Tuition and fees Room and board Total annual cost
Public 4-year (in-state) $11,610 $13,310 $24,920
Public 4-Year (out-of-state) $30,780 $13,310 $44,090
Private 4-Year $43,350 $15,250 $58,600
Source: 2024 Trends in College Pricing Report - College Board

How our college savings calculator works

This calculator determines if you will reach your college savings goals based on:

  • Current savings: The amount you've already set aside.
  • Monthly contributions: How much you plan to add each month.
  • Rate of return: Expected investment performance over time.
  • Education cost inflation: Uses 0.67% as the education cost inflation rate, based on the average increase in tuition, room, and board rates over the past 10 years, according to the 2024 Trends in College Pricing Report.

For investment return assumptions, the calculator lets you specify your expected rate of return. For context:

  • Historical stock market returns: The S&P 500 has averaged approximately 10% annually before inflation.
  • Inflation-adjusted returns: About 6-7% when adjusted for inflation.
  • Conservative investments: Lower-risk options like savings accounts may yield 1-4% but with greater stability.

Note: These calculations are hypothetical. Investments with higher potential returns generally come with higher risk and volatility. Past performance does not guarantee future results.

College savings strategies

529 college savings plans

A 529 plan is a tax-advantaged investment account designed specifically for education expenses. Key benefits include:

  • Tax-deferred growth: Your money grows tax-free.
  • Tax-free withdrawals: For qualified education expenses.
  • State tax benefits: Many states offer tax deductions or credits for contributions.
  • Flexibility: Funds can be used for college, K-12 tuition, apprenticeship programs and student loan repayments (up to certain limits).

Coverdell Education Savings Accounts (ESAs)

Coverdell ESAs offer tax-free growth and withdrawals for qualified education expenses, with some key differences from 529 plans:

  • Contribution limits: Maximum $2,000 per year per beneficiary.
  • Income limits: Phase-out for higher-income contributors.
  • More investment options: Greater control over specific investments.
  • K-12 expenses: Can be used for a broader range of K-12 expenses than 529 plans.

UGMA/UTMA Custodial Accounts

These accounts allow you to save and invest on behalf of a minor:

  • No contribution limits: Unlike education-specific accounts.
  • No withdrawal restrictions: Funds aren't limited to education expenses.
  • Tax considerations: First $1,250 of unearned income is tax-free, the next $1,250 is taxed at the child's rate.
  • Control transfer: Assets must be transferred to the child at age 18-25 (varies by state).