College Savings Calculator

Published on Aug 01, 2015 10:17 pm

College costs continue to increase, so it’s important to start saving early when planning for your child’s (or your own) college education. Every dollar you save toward college tuition is a dollar less you may have to borrow down the road, plus the interest on college savings can help build your college fund more quickly. Our College Savings Calculator can help you understand how much you should save toward college each year.

College Savings Calculator Definitions

  • Annual college cost inflation — How much you can reasonably expect total college costs, including tuition, fees, books, room and board, will cost each year. Generally, this is estimated at twice the inflation rate.1
  • Before-tax return — What rate of return do you expect from your college investment accounts before taxes?
  • Marginal tax bracket — The tax bracket you fall into based on your annual gross income and IRS tax rate schedules. However, if you are investing in a tax-deferred college savings account, such as a 529, you might choose to enter zero for this field.
  • Annual increases — How much do you want your total college savings to increase each year?

1 FinAid

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This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from, Inc., an Experian company. © 2015, Inc. All rights reserved.

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