How much should I save for college each month?
It depends most on the child's age and the type of college. For four years at the average public in-state price, a 5-year-old starting from zero needs about $652 a month. That assumes savings pay every bill. You don't have to plan that way, and you can lower the share in the calculator.
| Child’s age | Public two-year, in-district | Public four-year, in-state | Public four-year, out-of-state | Private nonprofit four-year |
|---|---|---|---|---|
| 0 | $134 | $462 | $818 | $1,089 |
| 2 | $152 | $524 | $929 | $1,236 |
| 5 | $189 | $652 | $1,155 | $1,537 |
| 8 | $248 | $855 | $1,515 | $2,016 |
| 10 | $311 | $1,074 | $1,901 | $2,530 |
| 12 | $417 | $1,436 | $2,543 | $3,384 |
| 14 | $626 | $2,158 | $3,822 | $5,086 |
| 16 | $1,253 | $4,320 | $7,651 | $10,181 |
For more than one child, run the calculator once for each, since their ages set different timelines. Add up the monthly amounts for your total. Deposits here stop when college starts, so any saving you keep doing during college lowers the amount you'd need.
What will college cost when my child gets there?
Take today's price and grow it by the rate you choose. No one knows that rate. At 3% a year, one year at today's $25,850 public in-state average would cost $44,008 in 18 years.
| Type of college | 2025-26 price | In 18 years at 2% | In 18 years at 3% | In 18 years at 5% |
|---|---|---|---|---|
| Public two-year, in-district | $15,000 | $21,424 | $25,536 | $36,099 |
| Public four-year, in-state | $25,850 | $36,920 | $44,008 | $62,211 |
| Public four-year, out-of-state | $45,780 | $65,385 | $77,937 | $110,175 |
| Private nonprofit four-year | $60,920 | $87,009 | $103,712 | $146,611 |
History gives no single answer. The College Board's figures, in 2025 dollars, show tuition, fees, housing, and food rising about 2% a year above inflation at public four-year colleges over the 30 years to 2025-26, and 1.7% at private nonprofit colleges. Over just the last 10 years, those figures were -0.3% and 0.2%. So it's worth testing two growth rates: your inflation assumption alone, and one about 2 points higher.
Sticker prices aren't what many students pay. These averages are before grants. The College Board estimates that in 2025-26, first-time, full-time in-state students at public four-year colleges paid $2,300 in average net tuition and fees, and private nonprofit students paid $16,910, after grants. That's tuition and fees only, not housing and food. Use a school's net price calculator for an estimate that fits your family, then enter your own cost.
How much will my 529 be worth in 10 years?
At $300 a month and a steady 6% return, a 529 would hold about $48,742 in 10 years. You'd have put in $36,000. The rest is growth, and real returns go up and down.
| A month | 5 years | 10 years | 15 years | 18 years |
|---|---|---|---|---|
| $50 | $3,474 | $8,124 | $14,346 | $19,048 |
| $100 | $6,949 | $16,247 | $28,691 | $38,096 |
| $250 | $17,371 | $40,618 | $71,728 | $95,240 |
| $500 | $34,743 | $81,237 | $143,456 | $190,480 |
| $1,000 | $69,486 | $162,473 | $286,912 | $380,959 |
Compare this with the amount you'll need to see your funding gap. Our compound interest calculator can test other returns, and how compound growth really works explains why starting early does so much of the work.
What are the 529 rules, including the 2025 law changes?
A 529 has no federal deduction. Its benefit comes when you take money out: IRS Publication 970 says no tax is due unless the distribution is more than the beneficiary's adjusted qualified education expenses. There are no income restrictions on contributors, and contributions can't be more than the amount needed for the beneficiary's qualified expenses. Check your plan for its overall limit.
- College costs that qualify: required tuition, fees, books, supplies, and equipment. Room and board count for students enrolled at least half-time, up to the greater of the school's cost-of-attendance allowance and, for school-run housing, the actual charge. Computers count if used primarily by the student during enrollment. Travel and personal costs aren't on the list.
- K-12 schooling: the limit is $20,000 per beneficiary per year from 2026, up from $10,000, under Public Law 119-21 (the 2025 tax law). For distributions after July 4, 2025, it also covers curriculum, books, online materials, tutoring, testing fees, dual enrollment, and certain therapies. Your state may treat these differently, so check.
- Credentials: the same law added tuition, fees, books, supplies, and equipment for recognized postsecondary credential programs, along with required testing and continuing education fees.
- Student loans: up to $10,000 in total on loans of the beneficiary or a sibling, counted separately for each.
- Roth IRA rollovers: from a 529 open more than 15 years, up to the yearly Roth limit, with a $35,000 lifetime cap. Contributions from the last 5 years don't qualify.
How much can you put in a year? There's no federal yearly cap, but gift tax rules matter. In 2026, the first $19,000 of gifts to any person isn't a taxable gift, so a married couple can give $38,000 if they each give that amount or elect to split gifts. Form 709 also lets a donor spread up to $95,000 of a 529 gift over five years. Going over usually means filing a return, not paying tax right away.
How does a state tax deduction change the math?
It lowers your real cost, in states that offer one. Enter your state's rate and yearly deductible limit under advanced options. The calculator takes the smaller of what you contribute and the limit, then multiplies by your rate. If you contribute $6,000 a year with a $5,000 limit and a 6% state rate, you'd save $300 a year. Those are example numbers.
Rules vary, so check yours. New York, for example, lets an account owner subtract contributions to its own 529 program, up to $5,000 or $10,000 on a joint return, for tax year 2025. Some states have no income tax at all. This tool leaves the rate at 0 until you enter it, because it doesn't know your state's rule. Your state's tax agency is the place to confirm it, including whether non-qualified withdrawals could bring the tax break back.
What if there’s a gap, or money left over?
A gap isn't failure. It's a number to plan around. You could raise the monthly amount, lower the share you plan to pay from savings, consider a lower-cost school, or expect some aid. Loans may fill the rest, and our student loan calculator shows what that would cost.
Money left over isn't lost, but cashing it out costs you. On a non-qualified withdrawal, the earnings part is taxable income, and a 10% additional tax generally applies. If $10,000 comes out and 40% of it is earnings, that's $4,000 taxed. At a 22% rate, you'd pay about $1,280, as an example. Publication 970 shows the method: with $950 of earnings, $5,300 distributed, and $5,200 of adjusted expenses, $18 of earnings is taxable.
You can often avoid that. Changing the beneficiary to a family member has no income tax effect, and a rollover to another family member's 529 within 60 days isn't taxable. The 10% additional tax doesn't apply to amounts matched by a tax-free scholarship, though the earnings are still taxable.
Match withdrawals to expenses in the same tax year, since Publication 970 compares each year's distributions with that year's expenses. You also can't use the same expenses for a 529 withdrawal and an education credit. A tax professional or your plan can help with the details.
Common questions
How much can a married couple contribute to a 529 plan?
No federal limit applies per year, though you should check your plan's overall limit. For gift tax purposes in 2026, each spouse can give $19,000 to one beneficiary, or $38,000 together. The five-year election lets each donor spread up to $95,000.
Is this also a 529 calculator?
Yes. The tool models 529 tax treatment for qualified withdrawals, and the same savings math works for other accounts. If you use a regular taxable account, growth would be taxed along the way, and the calculator shows a rough comparison.
How do I plan for two or more kids?
Run the calculator once per child, then add up the monthly amounts. Their timelines differ, so a single combined number can hide a stretch when two tuition bills overlap.
Can a 529 pay for private school?
Yes, up to $20,000 per year per beneficiary for K-12 expenses from 2026, under federal rules. This calculator models college bills only, and your state may not follow the federal rule.
What rate of college cost growth should I use?
There's no right answer. Try one at your inflation assumption and one a couple of points higher, and plan around the range. The default is only an example.
What if my child doesn’t go to college?
You can change the beneficiary to a family member without income tax, keep the money for later, or roll some into the beneficiary's Roth IRA if the rules are met. Taking it out for other reasons means tax and usually the 10% additional tax on earnings.
Sources
- Publication 970, chapter 7: Qualified Tuition Program · Internal Revenue Service
- Topic no. 313: Qualified tuition programs · Internal Revenue Service
- Public Law 119-21, sections 70413 and 70414 · U.S. Government Publishing Office
- Revenue Procedure 2025-32 (2026 inflation adjustments) · Internal Revenue Service
- Trends in College Pricing and Student Aid 2025 · College Board
- Instructions for Form IT-201, line 30 (2025) · New York State Department of Taxation and Finance