College Cost Calculator
The College Cost Calculator can help determine rough estimates of what to expect from college costs, and in turn, how much to begin budgeting for it.
Results
A Surprising Story: The Power of an Early Start
The Sharma family started planning for their daughter's college education when she was just three years old. They used a college cost calculator and were initially intimidated by the large projected cost. However, the calculator also showed them that they only needed to start saving a manageable amount of 8,000 per month to reach their goal, thanks to their 15-year investment horizon.
Their neighbors, the Guptas, decided to wait. They started saving when their son was 13, only five years before college. To reach the same goal, they needed to save over 35,000 per month. The surprise wasn't that college was expensive, but how dramatically the required savings amount changed based on when you start. The Sharmas' early start and the power of compounding made a seemingly impossible goal achievable with small, disciplined steps. This story highlights that when it comes to long-term goals like education, the biggest asset is time.
FAQs
Why is the "College cost increase rate" so important?
Historically, college tuition has increased at a rate much faster than general inflation. Factoring in a realistic increase rate gives you a much more accurate savings target. For more data, you can refer to research by trusted sources like the College Board.
What is a 529 Plan?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. You can learn more from financial education sites like Sallie Mae.
How can I find the specific cost of a particular college?
While this calculator uses averages, you can find precise cost data using official resources like the U.S. Department of Education's College Navigator or college ranking websites like U.S. News & World Report and The Princeton Review.