myUSFinance

1. Enter your College Cost Goal ($) — This value represents your college cost goal
2. Enter your Years to Save — This value represents your years to save
3. Enter your Expected Annual Return (%) — This value represents your expected annual return
4. Enter your Current Savings ($) — This value represents your current savings
5. Enter your Monthly Contribution ($) — This value represents your monthly contribution
6. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
7. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• FV — Future Value — the projected college savings at the target date
• PV — Present Value — current savings balance
• r — Monthly rate of return (annual return ÷ 12)
• n — Number of months until college
• PMT — Monthly contribution amount

Worked Example

Current savings: $5,000. Monthly contribution: $300. Annual return: 7%. Years until college: 15. FV = $5,000 × (1.00583)^180 + $300 × [((1.00583)^180 - 1)/0.00583] = $14,262 + $95,103 = $109,365.

Limitations and Assumptions

College costs have historically increased at 5-8% per year, outpacing general inflation. The average four-year public university costs approximately $100,000 total (in-state), while private universities average $220,000+. Plan for cost inflation by using a college cost inflation rate of 5-6% in your projections.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's see the power of consistent saving in action.

Scenario: Emma is 28 years old and wants to build long-term wealth. She has $5,000 in savings and can contribute $400 per month. She expects a 7% average annual return through a diversified index fund portfolio.

• Initial balance: $5,000
• Monthly contribution: $400
• Annual return: 7%
• Time horizon: 37 years (to age 65)

Results:

• Future value: $897,523
• Total contributions: $182,600 ($5,000 + $400 × 444 months)
• Interest earned: $714,923

Remarkably, 80% of Emma's final balance comes from investment returns, not her own contributions. If she waits just 5 years to start (beginning at 33 instead of 28), her future value drops to $610,387 — a difference of $287,136 from delaying five years. This demonstrates why starting early is the single most powerful wealth-building strategy.

1. Automate Your Savings

Set up automatic transfers from your checking account to savings or investment accounts on payday. Automating removes the temptation to spend and ensures consistent contributions regardless of willpower.

2. Start Small and Increase Gradually

If saving $500 per month feels impossible, start with $100 and increase by $25-50 every few months. The habit of saving matters more than the initial amount. Even $100 per month at 7% grows to over $120,000 in 20 years.

3. Take Full Advantage of Employer Matches

If your employer offers a 401(k) match, contribute at least enough to get the full match. A typical 50% match up to 6% of salary is an instant 50% return on your money — better than any investment.

4. Keep Emergency Fund Separate

Maintain 3-6 months of expenses in a high-yield savings account separate from your investment accounts. This prevents you from selling investments at a loss during emergencies.

5. Review and Rebalance Annually

Check your savings and investment allocations at least once a year. Rebalance if any asset class has drifted more than 5% from your target allocation. This maintains your intended risk level over time.