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Brian Lombardo, CFP®, CPA

Calculators


Got a question that involves number crunching? Use the calculators on this page to find the mathematical answer to the most commonly asked number-crunching questions, and see your inputs displayed next to the graph, chart, and/or table output in a side-by-side display.

Calculator: Print This Page
Saving for College Calculator
Projected Costs
$

College inflation typically runs 4% to 6% per year.

How Your Savings Match Up
$
$
%

This calculator projects the future cost of college and illustrates how your savings, if any, match up for each year of college. If there is a funding shortfall, the calculator shows that amount each year, and calculates both the monthly savings amount and the lump-sum amount needed to eliminate the shortfall.


Saving for College Calculator Chart

These results are based on the supplied data shown and the assumptions that follow.

Projected cost of college (total for all years): $397,677

Amount you want to fund: $397,677

Projected value of college savings: $229,860

Shortfall: $167,817
Your savings would fall short of your funding goal by:

... year 1 $39,579
... year 2 $41,122
... year 3 $42,725
... year 4 $44,391

Funding the shortfall would require additional monthly contributions of $588.49 or a one-time lump-sum payment today of $83,356.49.



    Assumptions

  • The projected value of college savings does not take into account federal or state income taxes, or investment fees and expenses, all which may vary depending on the savings vehicle selected (e.g., 529 plan, mutual fund, certificate of deposit). Earnings are compounded monthly. This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it a guarantee of future value. The projection assumes a fixed annual return; the rate of return on your actual investment portfolio will be different, and will vary according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal.
  • College savings, if any, are mapped proportionately against each year of college. Savings not used in a given year continue to earn interest at the rate selected.
  • The shortfall is the difference between the projected cost of college (adjusted by the percentage of costs you want to fund) and the projected value of college savings.
  • If there is a shortfall, the calculator determines both the extra monthly savings needed (in addition to any monthly savings currently being made) and the lump-sum amount needed today to eliminate the shortfall. If there is a surplus, this number represents the amount of money you’ll have left over after paying all college costs.
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Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA / SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Gateway Financial Advisors, Inc., and Cambridge Investment Research, Inc. are not affiliated.  Gateway Financial Advisors San Jose Branch is located at 2570 N 1st St, Ste 200 San Jose CA 95131.

The information presented here is not specific to any individual's personal circumstances.

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These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
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