Estimate how much college will cost for your children and how much you need to save each month or invest today to cover it.
The average annual increase in tuition, fees, books and room and board costs. Historically, this number has run as much as twice the rate of annual inflation.
The total amount you have set aside for college education needs.
Annual College Cost
This is the annual compounded rate of return before taxes that you expect from your college investment accounts. Depending upon your saving accounts choices and your risk propensity, this can range significantly.
Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024
This is the tax rate that your college savings accounts will be subject to. If you are investing in a tax-deferred account such as a 529 plan you may want to enter 0% here.
Table of Federal Income Brackets and Rates. Tax Rate For Single Filers For Married Individuals Filing Joint Returns For Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 $394,600 to $501,050 $197,300 to $250,500 35% $250,525 to $626,350 $501,050 to $751,600 $250,500 to $626,350 37% $626,350 or more $751,600 or more $626,350 or more.
When we recommend an annual savings amount that you will need to meet your college goals, this can be a level (0%) or increasing amount. Enter the annual increase that you would like the system to recommend. For example if your salary is increasing at 3% each year and you save the same percentage of your salary each year then you would enter 3% here.
Up to 6 entries.