529 Plan Benefits Calculator
Enter your savings assumptions
Compare a 529 plan with an investment account that pays taxes on investment earnings each year.
Your projected savings
Estimated values after 18 years
Additional projected value versus the simplified taxable account
529 earnings are assumed to be tax-free when withdrawn for qualified education expenses. This example does not include state tax benefits, plan fees, tax credits, or the detailed tax treatment of a taxable portfolio.
How your college savings could grow
Projected year-end account values
See how college savings fit into your financial plan
With WealthTrace, you can model education expenses alongside retirement savings, investments, taxes, and other financial goals.
Start a free trialIllustrative estimates only. Investment returns fluctuate, and not all taxable investment gains are taxed annually or at the same rate. Tax-free 529 withdrawals are subject to qualified-expense rules.
Saving for college is important, but so is making sure those expenses don't put your retirement at risk.
With WealthTrace Retirement Planning Software, you can include 529 plans, education expenses, investments, taxes, and retirement income in one comprehensive financial plan. See how funding a child's education affects your long-term savings and probability of retirement success.
Start a free trial to plan for college and retirement together.
529 College Savings Calculator Definitions
Initial Amount
The amount you currently have saved in a 529 college savings plan, or the amount you plan to invest initially.
For example, enter $10,000 if you're starting with a $10,000 investment.
Annual 529 Savings
The amount you plan to contribute to your 529 plan each year.
For example, enter $3,000 if you expect to save $250 per month.
Number of Years
The number of years you plan to save before using the money for education expenses.
For example, enter 18 if you're saving for a newborn child's college education.
Annual Return (Before Taxes)
The average annual investment return you expect your savings to earn before taxes.
The calculator applies the same assumed investment return to both the 529 plan and the taxable investment account for comparison purposes.
Tax Rate on Taxable Investments
The estimated tax rate applied to annual investment earnings in the taxable account.
For example, enter 25% if you want to assume that 25% of annual investment earnings is paid in taxes.
This rate is used to estimate the potential tax advantage of a 529 plan. Actual taxable investment returns may be subject to different tax rates depending on dividends, realized capital gains, and other factors.
Important Calculator Assumptions
This calculator assumes a constant annual investment return and that 529 withdrawals are used for qualified education expenses, allowing earnings to be withdrawn federally tax-free.
It does not account for state-specific 529 tax deductions or credits, investment fees, or the different tax treatment of unrealized capital gains in taxable accounts.
Actual results will depend on investment performance, tax laws, and how the funds are used.
Plan Ahead for College Costs
Use your own savings goals and investment assumptions in WealthTrace to see how your education fund could grow.
