Tuition Cost Forecast & College Savings Growth Calculator
Calculator Inputs
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How It Works & Formulas
This powerful financial planning tool helps you forecast future college costs and track the growth of your college savings plan. By modeling the impact of tuition inflation against your investment returns, you can gain a clear forecast of your financial readiness for higher education.
The calculator works in two parts: first, it projects the future tuition costs for each year of college, and second, it calculates the future value of your savings, including your initial balance and regular contributions. By comparing these two numbers, it reveals any financial gap or surplus.
Tuition Cost Forecast
Tuition_n = T₀ × (1 + g)ⁿ
This formula uses compound growth to predict your tuition costs. T₀ is the current or first-year tuition, g is the annual tuition inflation rate, and n is the number of years until that college year. This provides a crucial estimate of future college costs.
Savings Growth (Compound Interest)
FV = P₀×(1 + r)ʸ + C × ( (1 + r)ʸ − 1 ) ÷ r
This formula calculates the future value (FV) of your total college savings. P₀ is your initial savings amount, r is the annual investment return rate, C is your yearly contribution (or annualized monthly contribution), and y is the number of years. The calculator applies this iteratively to account for annual contribution increases, giving you a comprehensive college savings forecast.
Research Highlights
- Since 1983, U.S. college tuition has risen 5.8% per year on average, nearly twice as fast as medical or home costs.
- Bankrate estimates an 8% average tuition inflation rate, though post-pandemic figures have dropped slightly.
- College tuition has climbed 141% in the last 20 years, while wage inflation rose only 67%.
- This type of college savings tool is essential for effective financial planning, as it helps families understand the projected cost of college and how to close any potential funding gaps.
FAQs
It's a calculator that projects future college tuition costs, estimates your savings growth, and shows whether your plan covers the tuition—or where you might fall short.
They rely on input assumptions: inflation rate, investment return, and timing. The closer your assumptions match reality, the more useful the output.
Review inputs annually. If tuition prices or return rates change significantly, update those fields and re-run the forecast.
Yes—click "Print Results" to print a physical copy or save a PDF of your table, chart, and inputs for future planning.
You can approximate those inside your tuition input (e.g., your total estimated current cost). The calculator uses whatever "current tuition" value you enter.