529 Plan Calculator

What Is a 529 Plan and How Does It Work?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Named after Section 529 of the Internal Revenue Code, these plans allow your investments to grow tax-deferred, and withdrawals are tax-free when used for qualified education expenses. This includes college tuition, K-12 tuition, apprenticeship programs, and student loan repayments up to $10,000.

Using our 529 plan calculator, you can estimate how much you need to save each month to reach your education funding goal. Simply enter your child's current age, the age they will start school, the number of school years needed, the current annual cost, expected cost inflation, any initial investment, and your expected annual return rate.

Why Start a 529 Plan Early?

The power of compound interest means that starting early can significantly reduce the monthly contribution needed. Even small contributions made consistently over many years can grow substantially thanks to tax-deferred growth. Our college savings calculator helps you visualize how different starting ages and contribution amounts affect your total savings.

Qualified Education Expenses

Funds from a 529 plan can be used for tuition, fees, books, supplies, computers, room and board, and special needs equipment. The Tax Cuts and Jobs Act expanded qualified expenses to include K-12 tuition up to $10,000 annually per beneficiary. Apprenticeship program costs and student loan repayments are also covered.