Advantages of a 529 Plan

See what regular 529 contributions can grow to, tax-free for education.

Your numbers

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Projected value

At college time
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Projects tax-free growth at a constant return. Earnings are tax-free when used for qualified education expenses; non-qualified withdrawals of earnings face tax and a penalty.
About this calculator

Advantages of a 529 Plan

A 529 plan calculator projects how college savings in a 529 account can grow, tax-free for qualified education expenses, from your current balance and monthly contributions.

The 529 tax advantage

A 529 plan grows tax-free, and withdrawals for qualified education expenses, tuition, fees, room and board, and more, are tax-free too. Many states also offer a tax deduction or credit for contributions. That tax-free growth compounds over the years before college into a meaningfully larger balance than a taxable account would produce.

Flexibility and the fine print

529 funds can be used at most colleges and, within limits, for K-12 tuition, apprenticeships, and some student-loan repayment; unused funds can be moved to another beneficiary. But earnings withdrawn for non-qualified purposes face income tax plus a 10% penalty. Because the timeline is fixed, many plans offer age-based portfolios that automatically grow more conservative as college nears.

How to use it

  1. Enter your current 529 balance.
  2. Enter your monthly contribution.
  3. Set the years until college and expected return.
  4. See the projected tax-free value.

Frequently asked questions

What is a 529 plan?

A tax-advantaged college savings account. It grows tax-free and withdrawals for qualified education expenses are tax-free; many states add a deduction or credit.

What if my child doesn't use the 529?

You can change the beneficiary, or withdraw the money, but earnings taken for non-qualified purposes face income tax and a 10% penalty.

What can 529 funds pay for?

Qualified education expenses: tuition, fees, room and board, books, and, within limits, K-12 tuition, apprenticeships, and some student loans.

See the exact formula and a worked example on our methodology page.

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