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College savings: how much to save each month

Enter today’s cost of the program, when it starts and how fast tuition rises. The calculator shows how much must be saved by the first day of classes and how much to save each month until then, with earnings and tax.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Nov 1, 2026
The program
Your plan
Where to keep the money

Rates stay constant. The tax is charged on the earnings at withdrawal; type 0% for a tax-free education account.

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—Save each month
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The path to the first day of classes

Balance after tax, month by month, saving the suggested amount, against the fund needed when classes start.

Tap the chart to see the values.

What waiting to start costs

Monthly amount needed if you start saving today or a few years from now, for the same first day of classes.

Tap the chart to see the values.

The fund during the program

Balance left invested while tuition is paid, until it reaches zero in the last month.

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Year by year

Next step

Take this page’s results to another calculator with the fields already filled in.

Plan other goals on the same budget →See the deposits grow with compound interest →

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

Monthly cost at the start = (cost today + other costs) × (1 + increase)^years to start
Fund on the first day = Σ cost(k) ÷ (1 + net monthly return)^k, k = 0 … months of study − 1 (increase every 12 months)
Net factor for h months = (1 + i)^h − [(1 + i)^h − 1] × tax rate
Monthly deposit = (fund − already saved × factor(N)) ÷ Σ factor(N − k + 1), k = 1…N; starting w years later, the sum runs to N − 12w

Assumptions and limits

  • Same engine as the savings goal planner: deposits at the start of each month, constant rates, a single tax rate on the earnings at withdrawal. Projected returns are not guaranteed.
  • Costs rise once a year; during the program, the balance earns the same net return. A yearly cost is divided by 12. Grants, scholarships, loans and changes in rates are not included.

Official sources and references

Frequently asked questions

How do I work out how much to save for college?

Grow today’s cost by the yearly tuition increase until classes start, find how much must be saved by the first day (the present value of all payments, since the rest keeps earning) and spread that target into monthly deposits with earnings. The calculator does all three steps with the same engine as the savings goal planner.

How do I read the default example?

A program that costs $18,000 a year today, with 5% yearly increases, will cost about $29,320 a year when the 4-year program starts in 10 years. The four years add up to about $126,400, but you need about $117,300 on the first day. Starting from $2,000 saved, at 4.5% a year with 15% tax on earnings, the plan takes about $782 a month.

Why is the fund smaller than the total cost?

Because you do not pay everything on day one. While the first payments are made, the rest of the money stays invested and earns, covering part of the later payments. The “The fund during the program” chart shows the balance shrinking to zero in the last month.

What tuition increase should I use?

Tuition has often risen faster than general inflation. Check recent increases at the schools you are considering or use expected inflation plus 2 to 3 points. This is the input that moves the result the most, because it compounds over every year until graduation.

Where should I keep college savings?

With many years ahead, a diversified mix of stocks and bonds is common, shifting to safer options as the start date approaches. Tax-advantaged education accounts, such as 529 plans in the U.S., can raise the net return; set the tax to 0% if your account is tax-free.

What if I can only start later?

The “What waiting to start costs” chart shows the monthly amount if you start today or in 1, 2, 3 or 5 years, for the same first day of classes. Waiting shortens the time for compounding and raises the monthly amount a lot; starting small and increasing it over time usually beats waiting.

When should I talk to a professional?

For long plans and large amounts, a certified financial planner can help combine accounts, timing and taxes, and revisit the plan as income or family plans change. This calculator uses constant rates and does not forecast markets or rate changes.

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How much to save each month for college

Saving for college, for your children or for yourself, is a goal with a fixed date and a large price tag, but usually with many years ahead. The math has three parts: what the program will cost when it starts, how much must be saved by the first day of classes and how much to put away each month until then.

1. The cost when classes start

Tuition often rises faster than general inflation. At $18,000 a year today and 5% increases, the yearly cost passes $29,000 in 10 years. Add other costs that come with it, such as books, housing and transportation.

2. The fund on the first day

You do not need the whole cost saved on day one: while you pay the first years, the rest stays invested. The calculator discounts each future payment at the net return and shows the fund needed, which is less than the sum of all payments.

3. The monthly amount

The monthly amount is the fixed deposit that, together with what you already have and the earnings, reaches that fund on time. The earlier you start, the smaller it is: the “What waiting to start costs” chart shows the effect of waiting 1, 2, 3 or 5 years.

Where to keep the money

With 10 or more years ahead, many families use a diversified mix of stocks and bonds and shift to safer options as classes approach. In the U.S., 529 plans and Coverdell accounts let the earnings grow tax-free when used for education; other countries have their own education savings plans. Set the tax field to 0% if your account is tax-free.

Review every year

Update the cost, the increase rate and what you have saved once a year. Grants, scholarships, in-state or public options and student aid can change the plan a lot.