College Cost & 529 Savings Calculator

College costs rise faster than general inflation — historically 4–5% per year. A $31,000/year in-state degree today will cost roughly $45,000/year when a newborn turns 18. This calculator projects your child's actual college price tag and tells you exactly how much to save each month to hit your target.

The tuition inflation problem. At 4% annual growth, a 4-year in-state degree that costs $124,000 today will cost approximately $194,000 when your 8-year-old starts college. A private school degree currently running $262,000 could top $400,000. The sooner you start, the less each dollar has to carry.

Why the projected cost is higher than today's sticker price

The numbers above use College Board 2025-26 all-in annual costs (tuition, fees, room, board): $30,990 for in-state public, $50,920 for out-of-state public, and $65,470 for private nonprofit four-year colleges.¹ Those are today's prices. By the time your child enrolls, each year of college costs more — and the costs keep rising through all four years.

This calculator compounds tuition inflation separately for each of the four years of school. A student starting college in 10 years faces Year 1 costs at today's rate × 1.04¹⁰, Year 2 costs at 1.04¹¹, and so on. Adding the four inflated years gives the projected total.

What coverage percentage to use

Most families don't fund 100% of college costs from a 529. Common strategies:

50%: Cover half from 529, plan to cash-flow the rest. Works well when you started saving late or have competing priorities (retirement gap, mortgage).
75%: The planning default. Assumes some aid, work-study, or minimal borrowing — but the 529 does the heavy lifting.
100%: Appropriate for families who want zero debt exposure, have started early, or are targeting high-cost schools.

Funding 100% of a private school 529 when you also need to max retirement accounts is often impossible for families earning under $400K. Modeling at 75% and keeping the retirement savings plan intact is usually the better outcome — your child can always borrow for college; you cannot borrow for retirement.

College costs by school type — today vs. projected

School type	Today (2025-26, 4yr)	In 10 years (at 4% inflation)	In 18 years
In-state public	~$124,000	~$194,000	~$267,000
Out-of-state public	~$204,000	~$319,000	~$438,000
Private nonprofit	~$262,000	~$410,000	~$562,000

4-year totals. Projection at 4% annual tuition inflation on College Board 2025-26 base costs. Room, board, fees included. Each of the 4 college years inflates individually — Year 2 is more expensive than Year 1, etc.

529 gift tax rules for 2026

529 contributions are treated as gifts to the beneficiary. The 2026 rules:²

Annual exclusion: Each parent can contribute up to $19,000 per child per year ($38,000 per couple) without filing a gift tax return or touching the lifetime exemption.²
Superfunding (5-year election): You can front-load up to $95,000 per child in a single year ($190,000 per couple), elect to spread it over 5 years for gift tax purposes, and let the money compound immediately. No other gifts to that child during the 5-year window.³
Lifetime exemption: Contributions exceeding the annual exclusion use your lifetime exemption — $15 million in 2026, made permanent by the One Big Beautiful Bill Act (OBBBA).⁴
No income limits: Unlike Coverdell accounts, there are no income phase-outs on 529 contributions.

For grandparent-owned 529s: FAFSA simplification (effective for the 2024-25 aid year and later) eliminated the question about grandparent-owned 529 withdrawals, so grandparent 529 distributions no longer count as student income on the FAFSA. This change makes grandparent superfunding significantly more attractive.⁵

The compounding gap is large. Starting at birth vs. age 8 means each dollar has 10 additional years to compound. At 6.5% annual return, $1 invested at birth grows to $3.11 by age 18. The same $1 invested at age 8 grows to only $1.75. Starting earlier halves the required monthly contribution for the same outcome.

SECURE 2.0: The 529-to-Roth IRA exit valve

One of the common objections to 529s — "what if my child doesn't go to college?" — has a better answer since SECURE 2.0. Beginning in 2024, you can roll leftover 529 funds into a Roth IRA for the beneficiary, subject to:⁶

The 529 must have been open for at least 15 years
Annual rollover amount is limited to the Roth IRA contribution limit ($7,000 in 2026 for under-50)
Lifetime rollover limit: $35,000 per beneficiary
Rollovers count against the beneficiary's annual Roth IRA contribution limit

This exit valve doesn't eliminate the downside (non-qualified withdrawals still face taxes + 10% penalty on earnings), but it significantly reduces the stranded-money risk. Families who overfund a 529 can now convert the excess into a tax-free retirement account for their child. See our 529 Funding Strategy guide for plan selection and superfunding details.

What this calculator doesn't model

This is a planning tool with intentional simplifications. It doesn't model:

Investment returns during school: The 529 balance continues to grow while your child is in college. This calculator uses a lump-sum target at college entry — slightly conservative, since you'd actually draw the funds over 4 years.
Financial aid: A 529 owned by a parent is counted at a maximum 5.64% in the FAFSA EFC formula (much less than student-owned assets). High-balance 529s can modestly reduce need-based aid at some schools.
State tax deductions: Many states allow a deduction on contributions to their own plan. These aren't modeled here but can meaningfully improve the effective return — see our 529 strategy guide.
Scholarships, work-study, or future aid: Adjust your coverage % down if you expect meaningful aid.

Related tools and guides

Get a 529 strategy built for your household

A fee-only family advisor can model your 529 funding alongside retirement, insurance gaps, and estate plan — and tell you whether superfunding makes sense for your estate tax situation. No commission on products, just the math.

Sources

College Board — Trends in College Pricing 2025 Highlights. Annual all-in costs (tuition, fees, room, board) for 2025-26: in-state public $30,990; out-of-state public $50,920; private nonprofit $65,470. Used as base costs in this calculator.
IRS Topic No. 313 — Qualified Tuition Programs (QTPs). 529 contributions treated as gifts; annual exclusion of $19,000 per beneficiary in 2026 per IRS Rev. Proc. 2025-32.
SavingForCollege.com — 529 Contribution Limits 2026. Superfunding (5-year gift tax election) allows $95,000 per beneficiary ($190,000 per couple) in a single year; $19,000 annual exclusion applies per year of the 5-year period.
Tax Foundation — OBBBA Estate and Gift Tax Changes. One Big Beautiful Bill Act (July 2025) permanently set the federal estate and gift tax exemption at $15 million per individual, eliminating the 2026 sunset.
Federal Student Aid — FAFSA Simplification. Beginning 2024-25 aid year: grandparent-owned 529 distributions no longer reported as student income on the FAFSA.
IRS — 529 Rollovers to Roth IRAs (SECURE 2.0 § 126). Beginning 2024: qualified 529-to-Roth IRA rollovers allowed; 15-year account rule; $35,000 lifetime limit per beneficiary; annual rollovers subject to Roth IRA contribution limit.

College cost data from College Board 2025-26. Gift tax and 529 rules verified against IRS guidance for 2026. Projections use simplified assumptions — no state taxes, no aid adjustment, no intra-college return modeling. Results are planning estimates, not financial advice.