Scholarship Savings Calculator

About This Calculator

Find out how much you need to save each month in a 529 plan to cover your child's college costs — after expected scholarships, grants, and any money you've already saved. Enter the total 4-year cost, expected aid (scholarships and grants), your current 529 balance, years until enrollment, and your expected annual return to see the required monthly contribution, total aid coverage, and how investment growth reduces your savings burden.

How It Works

The calculator subtracts expected scholarships and grants from the total college cost, then subtracts your current savings balance to arrive at a net savings target. It then solves for the monthly payment (ordinary annuity formula) needed to reach that target by the enrollment date, given the expected annual growth rate. Scholarships and grants are input as estimates and are not guaranteed; plan conservatively.

The Formula

Frequently Asked Questions

Should I use scholarships my child hasn't received yet?

Enter your best realistic estimate based on your child's academic standing, extracurricular profile, and target schools. You can run the calculator multiple times with optimistic and conservative scholarship scenarios to see how much your monthly contribution changes. It's generally safer to under-estimate aid and save more than needed — excess 529 funds can be transferred to another family member, used for K-12 tuition (up to $10,000/year), or withdrawn (subject to tax and 10% penalty on earnings for non-qualified use).

What return rate should I use for my 529?

Age-based 529 portfolios typically target 5–7% annual returns for families with 10+ years until enrollment, shifting to lower-risk allocations (3–5%) as enrollment approaches. Your actual return depends on the investment options you choose. A moderate assumption of 5–6% is common for planning, but past performance does not guarantee future results.

What is included in the "total 4-year college cost"?

The total cost of attendance typically includes tuition and fees, room and board (on-campus or estimated off-campus), books and supplies, and personal expenses. Annual costs range from ~$25,000 (in-state public) to $90,000+ (private). For 4-year totals, multiply the expected Year 1 cost by ~4 (costs rise each year, typically 3–5% annually — enter an inflation-adjusted total if you prefer).

Are 529 withdrawals tax-free?

Federal income tax on earnings is waived when 529 funds are used for "qualified education expenses" — tuition, required fees, books, supplies, room and board (up to the school's Cost of Attendance allowance), and computers/internet if required. Non-qualified withdrawals incur income tax plus a 10% federal penalty on earnings. Many states also offer a deduction on contributions.

What happens if my child gets more scholarship money than expected?

If your 529 balance exceeds what's needed, the excess can be: (1) used for K-12 tuition (up to $10,000/year), (2) used for the beneficiary's student loan repayment (up to $10,000 lifetime), (3) transferred tax-free to another family member's 529, (4) rolled over to a Roth IRA for the beneficiary (up to $35,000 lifetime, subject to annual Roth limits — a SECURE 2.0 provision), or (5) withdrawn with income tax and 10% penalty on earnings only.