Finance
College Savings Calculator
Estimate the monthly saving needed for future education costs.
The result shows the future first-year cost, the total cost for all the years of college, and the monthly amount to save, so the monthly figure is the regular saving that covers the projected total.
Formula
Future cost grows with inflation, then the monthly saving is found from the future-value-of-an-annuity formula at the monthly return rate.
How it works
College costs vary hugely by institution and country, so enter costs for the type of school you expect. This assumes costs are paid at the start of college and saving stops then.
Worked example
For example, with a current annual cost of $20,000, 10 years until college, 4% annual cost inflation, a 6% annual investment return, and 4 years of college, the future first-year cost is $29,604.89, the total for 4 years is $125,716.08, and the monthly saving needed is $767.13.
FAQs
Why inflate costs?
Education costs have often risen faster than general inflation.
Should I save for all four years?
This total covers all years, discounted to a single saving plan.
What if returns are lower?
You would need higher monthly savings — try a lower return to stress-test.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.
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