What return rate should I assume?
Historical stock market averages are 7-10% annually. Conservative estimates: 3-4% for bonds, 5-7% for balanced funds, 7-10% for stock-heavy portfolios.
Education
College Savings Growth Calculator
Estimate how your monthly contributions grow over time.
Build Your Future Fund
Determine how much you'll have saved for college through compound interest.
What this calculator does
College savings growth calculators project how much you'll accumulate through regular contributions and investment returns. Education costs rise 3% annually, making early, consistent saving critical. This calculator shows year-by-year growth and estimates how many years of tuition your savings will cover.
How it works
The calculator compounds monthly contributions using your chosen annual return rate. Each month, your balance grows by the monthly rate, then a new contribution is added. It compares final savings against average tuition costs to show coverage percentage.
Formula
Final Amount = Σ(Contribution × (1 + Monthly Rate)^months remaining). Monthly Rate = Annual Rate ÷ 12 ÷ 100. Total Interest = Final Amount − Total Contributions. Tuition Coverage = Final Amount ÷ (Annual Tuition × 4 Years) × 100%.
Tips for using this calculator
- Start saving as early as possible to leverage compound interest
- Use tax-advantaged 529 plans for tax-free growth
- Diversify investments based on your timeline
- Plan for more than tuition—include room, board, books
- Remember college funding comes from multiple sources
Frequently asked questions
How much should I save monthly?
This depends on target and timeline. To save $100,000 in 18 years at 5%, you'd need roughly $350/month. Use the calculator to work backward from your goal.
Should I prioritize college savings over retirement?
Financial advisors recommend prioritizing retirement—children can borrow for college, but you can't borrow for retirement. Balance both, prioritizing retirement contributions first.