Personal finance
College savings gap
College costs more every year. This projects what four years will cost when your child gets there. And whether your savings will reach it.
Saving for college means aiming at a moving target: tuition has climbed faster than general inflation for decades, so the sticker price today understates what you'll actually pay. This inflates the future cost, projects your savings forward, and shows the gap. Plus the extra monthly saving that would close it.
Tuition, room and board in today's dollars.
Enter the cost, timeline and what you're saving.
Worked example
$30,000/year today, 10 years out, 4 years of college, $20,000 saved and $300/month going in:
| Measure | Value |
|---|---|
| Future cost of 4 years | $210,622 |
| Projected savings by then | $84,981 |
| Funding gap | $125,641 |
| Share of cost covered | 40.3% |
| Extra monthly saving to close it | $767 |
$30,000/year today becomes $210,622 for four years once inflated to when it's paid. The current plan covers 40.3% of that , leaving a $125,641 gap that an extra $767/month would close.
Questions
Why is the future cost so much higher than today's price?
Education inflation has run around 5% a year, faster than general inflation. So ten years out a year of college costs meaningfully more than it does now. Compounding over the years until enrollment does the rest.
Do I need to cover 100%?
Not necessarily. Scholarships, financial aid, the student's own contribution, and in-state or community-college options all lower what you personally fund. The gap here is the pure savings picture; treat it as the ceiling.
Does a 529's tax break change this?
It helps: 529 growth is tax-free when used for education, so you keep more than a taxable account would leave you. This projects growth without that bonus, so a 529 plan should do a little better than shown.
Related tools
- College degree ROI whether the degree pays off at all
- FIRE calculator the same compounding, for retirement
- 50/30/20 budget find room to save more
Projection on stated inflation and return assumptions. Not financial advice.