Free calculator · Updated March 2026
College Savings Calculator
Find out exactly how much you need to save each month to cover your child's college costs — and how a 529 plan can help you get there faster.
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How much does college cost in 2026?
According to College Board data, the average annual cost of college (tuition, fees, room and board) is $28,840 for public in-state, $46,730 for public out-of-state, and $60,420 for private nonprofit institutions. These figures have risen at roughly 4–5% per year, meaning a child born today will face costs roughly 2–2.5x higher by the time they enroll.
529 plan vs Roth IRA for college savings
| Feature | 529 Plan | Roth IRA |
|---|---|---|
| Annual contribution limit | $18,000 (gift tax limit) | $7,000 ($8,000 if 50+) |
| Tax-free growth | Yes | Yes |
| Tax-free withdrawals | For education expenses | For retirement + education |
| Penalty for non-education use | 10% + taxes on gains | None after age 59½ |
| Financial aid impact | 5.64% of balance | Not counted |
Frequently asked questions
When should I start saving for college?
The earlier the better — starting at birth gives you 18 years of compound growth. A family saving $200/month from birth at 6% annual return will accumulate about $75,000 by college age. Starting at age 10 with the same amount yields only about $32,000.
Is a 529 plan worth it?
For most families, yes. The tax-free growth and tax-free withdrawals for qualified education expenses provide a significant advantage over a taxable brokerage account. Many states also offer a state income tax deduction on contributions. The main risk is overfunding — but new rules allow rolling unused funds into a Roth IRA (up to $35,000 lifetime).
How much should I save for college each month?
A common rule of thumb is to save enough to cover one-third of projected costs, plan to borrow one-third, and cover the remaining third from income and scholarships during the college years. For a public in-state school, this typically means saving $150–$300/month starting from birth.
Sources: College Board Trends in College Pricing 2025, IRS Publication 970. FamilyNest Finance is for informational purposes only and does not constitute financial advice.