— Budgeting
College Savings Calculator
Estimate what college will cost when your child enrolls and how much to save monthly. Add current savings, expected return, tuition inflation, course length, living costs, and scholarships to see the future cost and savings plan.
Required monthly saving
$1,069
- Future cost of the course
- $367,648
- Corpus needed at enrolment
- $367,648
- Covered by current savings
- 0%
- First-year fee at enrolment
- $81,589
- Monthly at ±2% inflation
- $814
- Years to enrolment
- 13
Try: Engineering, $30k/yr, age 5, Study abroad, $60k + living, Medical, 5-year course, With $50k already saved
— Corpus vs cost, year by year
| Year | Age | Contributions | Returns | Balance | Future cost |
|---|---|---|---|---|---|
| 1 | 6 | $12,832 | $667 | $13,499 | $145,998 |
| 2 | 7 | $12,832 | $2,229 | $28,561 | $157,678 |
| 3 | 8 | $12,832 | $3,972 | $45,365 | $170,292 |
| 4 | 9 | $12,832 | $5,917 | $64,114 | $183,915 |
| 5 | 10 | $12,832 | $8,086 | $85,032 | $198,629 |
| 6 | 11 | $12,832 | $10,507 | $108,371 | $214,519 |
| 7 | 12 | $12,832 | $13,208 | $134,411 | $231,681 |
| 8 | 13 | $12,832 | $16,221 | $163,464 | $250,215 |
| 9 | 14 | $12,832 | $19,583 | $195,879 | $270,232 |
| 10 | 15 | $12,832 | $23,334 | $232,045 | $291,851 |
| 11 | 16 | $12,832 | $27,519 | $272,397 | $315,199 |
| 12 | 17 | $12,832 | $32,189 | $317,417 | $340,415 |
| 13 | 18 | $12,832 | $37,398 | $367,648 | $367,648 |
— Will your savings catch the cost?
Download— How it works
Future cost = today’s annual cost inflated at the education-inflation rate to each year of the course. The required monthly saving is solved so your current savings (grown at the expected return) plus future contributions reach the corpus needed at enrolment.
Why education inflation is the silent multiplier
The reason college planning shocks parents is that education costs rise far faster than ordinary prices. While general inflation might run 2–3%, tuition routinely climbs 8–10% a year — and compounded over a decade or more, that turns a manageable-looking annual fee into a daunting total. A course costing $30,000 a year today, at 5% education inflation, costs over $56,000 a year by the time a five-year-old enrols, and the full four years tops $240,000. Seeing that future number is the point: it’s what makes starting early, and investing for growth rather than parking in a savings account, non-negotiable.
Worked example — today’s $30,000/yr course, child aged 5, 5% education inflation, 8% return: The four-year course will cost about $243,800 when they enrol at 18. To fund it from zero, you’d need to save roughly $890 a month, every month, for 13 years.
The corpus, and the race against cost
The calculator solves the required monthly saving so that your existing savings — grown at your expected return — plus your future contributions reach the corpus needed by enrolment. The schedule and the race chart tell the story: one line is your corpus climbing as you save and it compounds; the other is the cost, inflating away. The goal is for your corpus to catch the cost by the enrolment year. If you already have savings earmarked, the calculator shows what share of the goal they cover on their own — sometimes a healthy head start, sometimes a reminder of how much further there is to go.
Refinements that matter
A few options make the plan realistic. Living and hostel costs, often as large as tuition for study abroad, can be added on top. A scholarship or family-contribution offset reduces the target. A savings step-up raises your contribution each year in line with income, lowering the daunting starting figure. And the funding approach matters: assuming the whole corpus is needed on day one is conservative, while the drawdown option recognises that the fund keeps growing while fees are paid year by year, so you need a little less up front. Whatever you assume, treat the return as uncertain and revisit the plan yearly — and as enrolment nears, shift toward safer assets so a bad market doesn’t arrive at the worst moment. Not financial advice.
— Reader questions
How much will my child’s college education cost?
Take today’s annual cost and inflate it at the education-inflation rate to the year they enrol. A $30,000/yr course at 5% inflation costs about $56,000/yr in 13 years — over $240,000 for a four-year degree. The calculator works out the full figure for your inputs.
Why is education inflation higher than normal inflation?
Tuition has historically risen 8–10% a year — well above the 2–3% of general inflation — driven by rising demand, staff and facility costs, and limited capacity at top institutions. Planning with ordinary inflation badly understates the future cost.
How much should I save each month for college?
It depends on the cost, the timeframe, your current savings and expected return. The calculator solves it precisely — for a $30,000/yr course and a five-year-old, it’s roughly $890 a month at an 8% return. Starting earlier dramatically lowers the figure.
What return should I assume for a college fund?
For a long horizon — more than a decade — an equity-tilted portfolio returning around 10–12% is common. As enrolment approaches, shift toward safer assets so a market fall doesn’t hit just when you need the money.
Should I count living costs and scholarships?
Yes — add living and hostel costs (often as much as tuition, especially abroad) to get the true figure, and reduce the target by any scholarship or family contribution you realistically expect. Both are advanced options here.