How to use this calculator
- Enter or choose current annual cost.
- Enter or choose annual cost increase.
- Enter or choose years until the first year of study.
- Enter or choose years of study.
- The projected total cost updates as you type. Use Copy result or Share to keep it.
Method
Cost in study year k = C × (1 + r)^(n + k − 1); Total = Σ over k = 1 … d
- C
- current annual cost
- r
- assumed annual increase
- n
- years until the first year of study
- d
- years of study
Worked example
- First year = 20,000 × 1.05³ = 23,152.50.
- Later years: 24,310.13, 25,525.63 and 26,801.91.
- Total = 23,152.50 + 24,310.13 + 25,525.63 + 26,801.91 = 99,790.17, versus 80,000 at today’s price.
At 5% a year, a 20,000-a-year course starting in 3 years costs about 99,790 over 4 years, 19,790 more than today’s price.
What the result means
Use the total as a savings target, and compare it with the Savings Goal Calculator. Run a higher and a lower rate to see the range.
Assumptions and limits
- Costs rise at one constant rate every year.
- Each year’s cost is paid at the start of that year.
- Actual increases vary by institution and year, and scholarships, aid and tax benefits are not included.
Questions
What rate should I use?
Check your target institution’s published fee history, or use your general inflation expectation plus a margin. The 5% default is only an example.
Should I include housing?
Yes, if you will pay it. Include whatever you want the projection to cover.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.