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College Funding Calculator

In today's world, a quality education is vitally important. In fact, a higher education is swiftly becoming a minimum requirement for people facing today's competitive job market. If one of your goals is to help pay for your family's education, but you're not sure you're saving enough, or even how much you'll need, this calculator can help.
Current Cost of Tuition: * $
Tuition inflation rate:
%
Age of Child 1: *
Age of Child 2:
Age of Child 3:
Age of Child 4:
Current Savings: $
Annual Investment Return: *
%
Annual Contribution to Savings (Taxable): * $
Federal Tax Rate:
State Tax Rate:
Calculate Clear
* Denotes a required field.
Assumptions:
  • Tuition is assumed to be paid at the beginning of the year and to increase at a rate that is compounded annually.
  • Annual payments are assumed to be paid at the beginning of each year and earn a rate that is compounded annually.
  • Children are assumed to begin college at age 18 and attend for four years.
  • Children are all assumed to currently be under the age of 18.
  • Annual payments will continue until the youngest child finishes college. For example, if the youngest child is 5, then the user will make annual payments at the beginning of every year for 22-5=17 years.
  • All interest earned is taxable.
  • If cash flow (i.e. tuition) exceeds the balance in the college fund during any year, it is assumed that the money can be borrowed at the same rate that it can be invested to compensate for negative cash balances in any given year. The only requirement to be able to fund the scenario is that the present value of the contribution to the fund is equal to the present value of the cost of tuition for all children.

This calculator is intended as a comparison/estimation tool only and is not intended as a substitute for tax or legal advice.