This calculator is designed to calculate the amount of money needed to fund a child's college education. It calculates the amount required to be accumulated at the time of entering college and the amount of money needed to be saved annually to pay for education.
Age of child today
Age child goes to school
Years in school
Cost of college in today's dollars
Expected tuition inflation rate
Tuition inflation has historically ranged from 6% to 8%.
Current savings balance for college
Earnings rate for investments
How many years (annual payments) are you going to save?
This input represents the number of years over which funding of the college costs will occur. Funding might occur from today up until the beginning of college. Alternatively, funding might occur from today through the end of college. Adjust this input accordingly.
Funds needed in today's dollars
This number is the amount of money in today's dollars that is needed to fund the cost of college, based on the assumptions provided.
If the current savings balance equals this number, then the balance should increase enough to cover the cost of college. The annual savings required should then equal $0.
Funds needed upon entering college
This number is the amount of money in future dollars that is needed to be accumulated by the time the child is expected to begin college, based on the assumptions provided.
Annual savings required
This number is the amount of money that needs to be saved annually. If the number is negative, then it indicates that current savings balance exceeds the required accumulation in today's dollars. This amount equals the amount of money that could be removed from the account while still covering the cost of the education.