Plan your child's education savings and see how your 529 plan can grow tax-free
Estimated 4-year public in-state cost at age 18
| Year | Age | Contributions | Growth | Balance |
|---|---|---|---|---|
| 1 | 4 | $8,600 | $409 | $9,009 |
| 2 | 5 | $12,200 | $1,065 | $13,265 |
| 3 | 6 | $15,800 | $1,984 | $17,784 |
| 4 | 7 | $19,400 | $3,182 | $22,582 |
| 5 | 8 | $23,000 | $4,675 | $27,675 |
| 6 | 9 | $26,600 | $6,483 | $33,083 |
| 7 | 10 | $30,200 | $8,624 | $38,824 |
| 8 | 11 | $33,800 | $11,119 | $44,919 |
| 9 | 12 | $37,400 | $13,990 | $51,390 |
| 10 | 13 | $41,000 | $17,261 | $58,261 |
| 11 | 14 | $44,600 | $20,955 | $65,555 |
| 12 | 15 | $48,200 | $25,099 | $73,299 |
| 13 | 16 | $51,800 | $29,720 | $81,520 |
| 14 | 17 | $55,400 | $34,849 | $90,249 |
| 15 | 18 | $59,000 | $40,516 | $99,516 |
A 529 plan is a tax-advantaged account for education savings: contributions grow tax-deferred, and withdrawals for qualified education expenses are federally tax-free. This calculator projects your child's college fund from monthly contributions and an assumed return, against the rising cost of education.
Education inflation has historically outpaced general inflation, which makes starting early especially valuable here — the earlier dollars both compound longer and beat more of the tuition growth curve.
College tuition, fees, books, supplies, computers, and room and board for at least half-time students; up to $10,000/year of K–12 tuition; and up to a $10,000 lifetime amount of student loan repayment per beneficiary. Non-qualified withdrawals owe income tax plus a 10% penalty on the earnings portion.
You have options: change the beneficiary to another family member, hold the account (there's no age deadline), use it for trade schools or apprenticeships, or — under SECURE 2.0 — roll over up to $35,000 (lifetime) to the beneficiary's Roth IRA if the account is at least 15 years old, subject to annual limits.
Modestly. A parent-owned 529 is assessed at a maximum of 5.64% of its value in the federal aid formula — far gentler than assets held in the student's name. The tax-free growth usually outweighs the small aid reduction.
A common approach is targeting a third to half of projected costs from savings, with the rest from current income and aid — few families pre-fund 100%. Use projected (inflated) costs for your child's start year, not today's sticker price; this calculator does that projection for you.
How 529 plans work, their tax advantages, and why starting early can dramatically reduce the burden of education costs.