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529 Calculator
A 529 calculator shows how a 529 college savings plan can grow over time. Enter your starting balance, how much you plan to save each month, your expected annual return, and how many years until college, and it estimates the total balance, how much you contributed, and how much growth added on top.
Per month or per year, as chosen below.
Annual contributions are spread evenly across the twelve months of each year.
Your state tax rate, if your state lets you deduct 529 contributions. 0 if none — the balance is unchanged.
| Starting balance | |
| Total contributions | |
| Investment growth | |
| Future value | |
| Estimated state tax saved |
How it works
A 529 plan is a savings account designed for education costs. Money in the plan can grow tax-deferred, and withdrawals used for qualified education expenses — such as college tuition, room and board, books, and in many cases K-12 tuition up to a yearly limit — are generally free of federal tax. Many states also offer a tax deduction or credit for contributions, though the rules differ by plan, so check the plan in the state where you live.
Your starting balance is what is already saved. Your monthly contribution is the regular amount you add — even a modest monthly amount adds up over a decade or more, because every contribution gets years to compound. The expected annual return is your assumed average yearly growth after fees; a 6% planning figure is common for a balanced portfolio, but returns are never guaranteed and will be higher in some years and lower in others. The years until college is how long the money stays invested before you start spending it.
The formula compounds monthly: the starting balance grows at the monthly rate for the full period, and each monthly contribution grows from the month it is made:
where r is the annual return as a decimal and n is the number of years.
Contribution frequency is a choice of habit, not of maths: $2,400 a year saved as $200 a month grows to the same balance as $2,400 paid once a year and spread evenly across the months. Some states also let you deduct 529 contributions from your state taxable income — enter your state tax rate above and the calculator estimates the total tax saved on your contributions. That saving does not change the plan balance; it is extra money back in your pocket. State rules differ, so check your own plan before counting on it.
Two things matter most: starting early and saving regularly. A family that starts when a child is born has eighteen years of compounding, while a family that starts at age ten has only eight — and the early starter can end up with far more even if both save the same amount each month. As college gets closer, many plans shift automatically to safer investments, so the return assumption should get more modest in the final years. This calculator shows growth before tax and fees and assumes a steady return, so treat the result as a planning estimate.
Worked example
The Patels open a 529 plan with $5,000 when their daughter is eight. They save $200 a month and assume a 6% annual return for the 10 years until she starts college.
First, the starting balance grows: $5,000 × (1.06)10 is about $5,000 × 1.7908 = $8,954. Their monthly contributions add up to $200 × 120 months = $24,000 paid in, and with monthly compounding at 0.5% a month they grow to about $32,776.
Add the two parts together: $8,954 + $32,776 = $41,730 in total. So $29,000 of their own money — $5,000 to start plus $24,000 in monthly savings — becomes about $41,730, with roughly $12,730 of growth. If they had waited five years and saved for only five, the same $200 a month would have grown to only about $13,954 plus the starting balance, which shows how much the extra years are worth.
FAQ
What is a 529 plan?
A 529 plan is a savings account for education costs. Savings can grow tax-deferred, and withdrawals for qualified education expenses are generally free of federal tax.
What can 529 money be used for?
Qualified expenses include college tuition, fees, room and board, books and supplies, and in many cases K-12 tuition up to a yearly limit. Using the money for other things can trigger tax and a penalty on the earnings.
What if my child does not go to college?
You can change the beneficiary to another family member, use the money for other qualified education costs, or in some cases roll part of it into a Roth IRA for the beneficiary, under the current rules. Check the rules in force at the time before you decide.
Is there a limit on 529 contributions?
Plans have a total balance limit that varies by state, and large gifts can have gift-tax effects. There is no yearly federal contribution limit in the usual sense, but check your plan and the current gift-tax rules.
Does this calculator include fees or tax?
No. This calculator shows growth before fees and tax, with a steady assumed return. Real plans charge fees, returns vary year to year, and tax treatment depends on how the money is used.
Can 529 contributions save state tax?
In many states, yes. Some states let you deduct 529 contributions from your state taxable income, so the saving is your contributions times your state tax rate. On $24,000 of contributions at a 5% state rate, that is about $1,200 saved. The deduction does not change the plan balance.