The cost of higher education has consistently outpaced general inflation for decades, making early and disciplined savings critical. Tuition inflation often runs between 4% and 6% annually, which means a degree that costs $25,000 per year today could easily cost over $50,000 per year in 15 years. Starting early gives you more time for compound growth to work in your favor.

A 529 college savings plan is one of the most popular vehicles for education savings. These plans offer tax-advantaged growth, meaning you will not pay federal taxes on earnings used for qualified education expenses. Many states also offer state income tax deductions for contributions. The combination of tax benefits and compound growth makes 529 plans a powerful tool for funding education.

This calculator factors in both tuition inflation and investment returns to give you a realistic projection. The projected total cost reflects how much college will actually cost when your child enrolls, not what it costs today. The monthly contribution needed represents the amount you would need to invest each month, earning your expected return, to fully cover that future cost by the time your child starts school.