College Cost Calculator United States

Tuition, fees, room and board rarely stay the same, and the further away enrollment is, the more today’s price understates what you will pay. This college cost calculator grows today’s annual cost by an education-inflation rate you choose across every year of attendance, so you can set a savings goal against a projected figure.

Why today’s price is not the number to save for

If a year of college costs $30,000 today and your child starts in ten years, saving for $30,000 a year will fall short. Each year until enrollment adds another increase, and the price keeps rising during each year of attendance. Over a decade of steady increases, the total can end up half as much again as today’s price, or more. The calculator shows the projected total next to the same years priced at today’s cost.

How the projection is built

The growth factor is one plus your inflation rate as a decimal. The first-year cost is today’s annual cost times the growth factor raised to the number of years until college. The total adds that first-year cost and each later year inflated once more, so a four-year degree includes four years of rising prices. For comparison, the calculator also shows today’s annual cost multiplied by the years in college, with no inflation.

Worked example

Suppose college costs $30,000 a year today, enrollment is ten years away, you assume 5 percent annual education inflation, and the student attends for four years. With a growth factor of 1.05 raised to the tenth power, the first-year cost is roughly $48,900. Adding four years, each with another year of inflation, gives a total of about $210,600. Four years at today’s price is $120,000, so inflation adds about $90,000 over the planning horizon, and a savings plan based on today’s price would leave a large shortfall.

Choosing an inflation rate

Education inflation is an assumption, so test a range. College costs have generally risen faster than the consumer price index, so a rate below general inflation is usually too optimistic. Many families model 4 to 6 percent. Run the calculator at the low and high ends of your range; the two totals bracket the target. If the spread is wide, save toward the higher figure and treat lower actual inflation as a cushion.

Turning the projection into a plan

The projected total works as a target for a 529 college savings plan, a tax-advantaged account built for this purpose. Use a savings-goal calculator to work back to a monthly contribution, including the return you expect the account to earn. Revisit the projection every year or two; as enrollment approaches, your assumptions firm up. Early contributions have the most time to compound alongside the rising cost.

Assumptions and limitations

This calculator projects the published cost of attendance only. It does not model financial aid, scholarships, grants or student loans, which reduce what a family pays, so read the projection as an upper bound. It assumes one constant inflation rate for the whole period, while real cost increases vary from year to year and differ sharply between public in-state, public out-of-state and private institutions. It also assumes consecutive years of attendance. For a precise budget, use the specific institution’s figures and your expected aid once you know them.

About This College Cost Calculator

Use this college cost calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.