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College Savings Calculator

This college savings calculator shows if you are saving enough for expected college education expenses. You can adjust the calculator to determine how much more you might have to save.

With the cost of college projected to increase 3.2% a year, your total education cost is estimated at about $53,987.You could expect a shortfall of $1,051.

Current College Savings
Current College Annual Contributions
Investment Style
Number of Students
Name of Student
School of Choice
A Coverdell Education Savings Account (ESA) from Scottrade is a convenient, tax-free way to save for future educational expenses.
For details on criteria, calculations, limitations and assumptions used, please see:

Calculations & Assumptions

IMPORTANT: The projections or other information generated by the College Savings Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.

This calculator is for informational purposes only and should not be considered investment advice. The results presented by this calculator are hypothetical and may not reflect the actual growth of your own investments. Scottrade is not responsible for the consequences of any decisions or actions taken as a result of information provided by this tool. Scottrade is not responsible for any human or mechanical errors or omissions. Please consult a tax, legal, or financial advisor with questions regarding your investment objectives and personal tax or financial situation.

Scottrade does not provide tax advice. The material provided in this article is for informational purposes only and Scottrade is not responsible for any errors or omissions. Contribution and income limits are subject to change without notice. Please consult your tax, or legal, advisor for questions concerning your personal tax or financial situation.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.

College Savings Calculation & Assumptions

Current College Annual Contributions:
  • Each year, both the taxable and tax-free annual savings amount increase by the inflation amount.
  • Tax Rate
    • The taxable portfolio is taxed each year based on your combined marginal Federal and State income tax rate instead of a possible lower capital gains tax.
  • School Choice
    • Costs include tuition, fees, room and board, books, travel and incidental expenses.
  • College Cost Annual Estimate
    • The calculator will increase the initial College Cost entered by 3.2% per year.
  • Withdrawals
    • Withdrawals occur first from the tax-free portfolio followed by the taxable portfolio.
  • Inflation
    • A constant 3.55% historical rate was calculated as the average year over year inflation rate in the Consumer Price Index (CPI-U).
  • Investment Style
    • The table provides the five asset allocation choices and the composition of the underlying portfolios:

       

      Large Cap US StocksMid Cap US StocksSmall Cap US StocksInternational StocksBondsCash Equivalents
      Conservative16%4%2%8%58%12%
      Balanced23%7%5%15%43%7%
      Moderate29%10%8%23%28%2%
      Growth34%12%10%29%13%2%
      Aggressive36%15%13%34%0%2%