College Cost Calculator

How to use this calculator

1. Enter or choose yearly cost today.
2. Enter or choose yearly cost increase.
3. Enter or choose years until college starts.
4. Enter or choose years of study.
5. Enter or choose share of the cost you plan to cover.
6. The monthly saving needed updates as you type. Use Copy result or Share to keep it.

Method

Cost in study year k = Cost × (1 + g)^(Y + k − 1); Goal = Share × Σ costs; Monthly saving = (Goal − S × (1 + R)^Y) × i ÷ ((1 + i)^(12Y) − 1), with i = (1 + R)^(1/12) − 1

g

yearly cost increase

Y

years until college starts

S

savings so far

R

yearly return on savings

Worked example

1. Year 1 starts in 2 years: 20,000 × 1.05² = 22,050.
2. Year 2: 20,000 × 1.05³ = 23,152.50; total = 45,202.50.
3. With no return, the saving is spread over 24 months: 45,202.50 ÷ 24 = 1,883.44.

Two years of college costing $20,000 a year today, rising 5% a year and starting in 2 years, will cost about $45,200, or $1,883.44 a month to save.

What the result means

The monthly figure assumes you have the whole amount saved by the first day. In practice later years can be paid partly from savings made during study, grants or income, so treat it as an upper bound for your share.

Assumptions and limits

• Costs rise at a constant rate and each year’s cost is paid at the start of that year.
• Savings are made monthly until college starts and earn a constant return.
• Grants and scholarships are reflected only through the share you enter.
• Financial aid, tax-advantaged plans and taxes on returns are not modelled.
• The money needed for later study years is not discounted; this slightly overstates the saving needed.