Calculate 529

529 College Savings Calculator

function calculate529() { var childAge = parseFloat(document.getElementById('childAge').value); var startAge = parseFloat(document.getElementById('startAge').value); var currentSavings = parseFloat(document.getElementById('currentSavings').value); var monthlyContribution = parseFloat(document.getElementById('monthlyContribution').value); var currentTuition = parseFloat(document.getElementById('currentTuition').value); var annualReturn = parseFloat(document.getElementById('annualReturn').value) / 100; var collegeInflation = parseFloat(document.getElementById('collegeInflation').value) / 100; if (isNaN(childAge) || isNaN(startAge) || isNaN(currentSavings) || isNaN(monthlyContribution) || isNaN(currentTuition)) { alert("Please fill in all fields with valid numbers."); return; } var yearsToSave = startAge – childAge; if (yearsToSave 0) { fvMonthly = monthlyContribution * (Math.pow(1 + monthlyRate, months) – 1) / monthlyRate; } else { fvMonthly = monthlyContribution * months; } var totalSavings = fvCurrent + fvMonthly; // Projected 4-Year Cost // We assume tuition is paid at the start of each year for 4 years var totalCost = 0; for (var i = 0; i = 0) { statusMsg.style.color = "#2e7d32"; statusMsg.innerText = "Congratulations! You are on track to cover " + Math.round((totalSavings / totalCost) * 100) + "% of the projected costs."; } else { statusMsg.style.color = "#c62828"; statusMsg.innerText = "Estimated Shortfall: $" + Math.abs(diff).toLocaleString(undefined, {maximumFractionDigits: 0}) + ". You may need to increase your monthly contribution."; } document.getElementById('results').style.display = 'block'; }

How to Calculate Your 529 Plan Progress

A 529 plan is one of the most powerful tools for families to save for education. Because these accounts offer tax-free growth and tax-free withdrawals for qualified education expenses, understanding the math behind your future balance is crucial for long-term financial planning.

Key Factors in Your 529 Calculation

To accurately project how much you will have saved by the time your child reaches age 18, you must consider four critical variables:

• Time Horizon: The number of years until the beneficiary starts college. The longer the timeframe, the more compound interest works in your favor.
• Expected Rate of Return: Most 529 plans offer age-based portfolios that shift from aggressive (equities) to conservative (bonds/cash) as the child gets older. A typical average return ranges from 5% to 7% depending on risk tolerance.
• Tuition Inflation: Historically, college costs rise faster than the general Consumer Price Index. It is standard to estimate a 4% to 5% annual increase in tuition and fees.
• Current Savings vs. Monthly Contributions: Your initial deposit sets the foundation, but regular monthly contributions often contribute the bulk of the final balance due to the "dollar-cost averaging" effect.

Example Scenario

Imagine you have a 1-year-old child and you want them to start college at age 18. If you have $5,000 already saved and contribute $250 per month with an 6% annual return, your projected balance after 17 years would be approximately $100,000.

However, if the current cost of a public university is $25,000 per year, a 5% inflation rate means that in 17 years, the first year of college could cost over $57,000, bringing the total 4-year cost to nearly $247,000. This highlights why starting early and adjusting contributions is vital.

Why the Result Matters

This calculator helps you identify the "shortfall"—the gap between what you are currently on track to save and what the actual cost is likely to be. By identifying this gap early, you can adjust your monthly budget, look into tax-advantaged state credits, or plan for supplemental financial aid and scholarships.