529 College Savings Calculator
Project a 529 college-savings plan's future value from a starting balance, monthly contributions, an expected return, and a time horizon.
How to use this tool
- Enter the 529 account's current balance.
- Enter your planned monthly contribution.
- Enter an expected annual return (compounded monthly) — use a net-of-fee figure to be conservative.
- Enter the years until withdrawals begin and read the projected balance and growth.
See how a 529 college-savings plan could grow. Enter your current balance, monthly contribution, expected return, and years until college to project the future balance and how much of it is investment growth.
Formula
With monthly rate r = annual return ÷ 12 and n = years × 12 months:
Future value = Balance × (1 + r)n + Monthly × [((1 + r)n − 1) ÷ r]
The first term grows today's balance; the second is the future value of an ordinary annuity of monthly contributions. Investment growth = Future value − Total contributions.
How it works
A 529 plan is a tax-advantaged account for education costs. This calculator projects its balance by compounding monthly: it grows the current balance forward and adds the future value of a stream of equal monthly contributions made at month-end (an ordinary annuity). The expected return is treated as a constant nominal rate compounded monthly — a reasonable planning convention, though real markets vary year to year.
The projection is pre-tax-benefit and pre-fee: qualified 529 withdrawals are generally federal-tax-free, and many states add deductions or credits, none of which are modeled here; likewise we do not subtract plan expense ratios, so enter a net-of-fee return if you want a conservative figure. We assume contributions stay constant and returns stay flat, so treat the output as a planning estimate, not a guarantee. To stress-test, rerun with a lower return such as 4–5%.
Reviewed by the AbraCalc Education Desk. This is an educational estimate, not investment or tax advice; confirm contribution limits, state benefits, and qualified expenses with your plan provider and tax authority.
Worked example
$5,000 start, $200/month, 6% return, 10 years
- Monthly rate r = 6% ÷ 12 = 0.5%; months n = 10 × 12 = 120.
- Grow the balance: 5,000 × (1.005)^120 ≈ 9,096.98.
- Future value of contributions: 200 × ((1.005)^120 − 1) ÷ 0.005 ≈ 32,775.87.
- Add them: 9,096.98 + 32,775.87 ≈ 41,872.85.
- Total contributions = 5,000 + 200 × 120 = 29,000; growth ≈ 12,872.85.
Projected balance = $41,872.85 (growth $12,872.85)
Projected balance: $5,000 start + $200/month at 6% by horizon
| Years | Total contributions | Projected balance | Growth |
|---|---|---|---|
| 5 | $17,000 | $20,683.93 | $3,683.93 |
| 10 | $29,000 | $41,872.85 | $12,872.85 |
| 15 | $41,000 | $70,343.85 | $29,343.85 |
| 18 | $48,200 | $92,019.74 | $43,819.74 |
Key terms
- 529 plan
- A tax-advantaged savings plan designed to fund education expenses; earnings grow tax-deferred and qualified withdrawals are federal-tax-free.
- Future value
- What an investment will be worth at a later date after compounding.
- Ordinary annuity
- A series of equal payments made at the end of each period — the model used for monthly contributions here.
- Nominal return
- The stated annual return before adjusting for inflation; here compounded monthly.
Frequently asked questions
- What return should I assume for a 529?
- It depends on the plan's investments. Many savers use 5–7% for a diversified, equity-tilted portfolio and lower as the child nears college (age-based glide paths). Enter a net-of-fee number for realism.
- Are 529 earnings taxed?
- Earnings grow tax-deferred and qualified education withdrawals are generally federal-tax-free; many states add deductions or credits. This calculator shows pre-tax-benefit growth only.
- Does this include plan fees?
- No. Subtract the plan's expense ratio from your return before entering it if you want a fee-adjusted projection.