Main Menu Name: College
Calculates the inflation-adjusted cost of college education for a stated number of years, the future value of savings already committed to educational objectives, the additional funding required after consideration of any scholarships, grants, or gifts from family members, and the immediate, annual or monthly contribution needed to fund a shortfall.
In this article:
In trying to estimate future college costs and the rate of savings that will be needed to pay those costs, several factors will need to be considered:
- College costs can vary greatly among different types of institutions, with four-year private colleges and universities usually costing more than twice what is charged state residents by public four-year colleges.
- Inflation in college costs has been generally higher than inflation in other kinds of prices over the last thirty to forty years, and annual increases of at least 5% to 7% seems to be the rule and not the exception. However, the rates of inflation have also varied by the type of institutions, with costs at private colleges and universities generally increasing faster than costs at public schools.
- The published costs can be much higher than what students actually pay, due to the availability of grants, scholarships, and other forms of student aid, all of which can vary greatly from school to school and may increase or decrease over time.
Current information on college costs and trends can be found on the website of the College Board (www.collegeboard.com).
Why should I use this calculator?
- To calculate the inflation-adjusted cost of a college education.
- To measure the amount of additional resources needed to fund a college education or meet other education needs.
- To determine the effect of various assumptions on the funding arrangements and contribution levels necessary to meet college or other educational costs.
In 2018, the average annual cost of tuition, room, and board for private colleges was over $48,000. Costs for public institutions were over $21,000. Costs for Ivy League schools were over $58,000 per year. Resources: Ivy League and Public and Private. When using this calculator, it would be wise to assume that college expenses will continue to increase about 6 to 10 percent per year as they have done for almost the past 30 years.
- Current Annual Cost: Enter the estimated annual college cost (today's dollars).
- Annual Inflation Rate: Enter the projected annual inflation rate.
- Number of Years until First Year of College: Enter the number of years until the first year of college.
- Number of Years of College: Enter the anticipated number of years of college.
- Current Savings: Enter the amount of current savings committed to college costs.
- After-tax Return on Investments: Enter the estimated after-tax return on investments.
- Amount of Future Scholarships, Loans, Grants, etc.: Enter the estimated amount of future scholarships, grants, and gifts from family members.
The program will calculate the projected, inflation-adjusted cost of college for the given education period. It will determine the future value of capital already saved for education. The program will also add the amount of future funds from other sources such as scholarships and it will calculate the additional amount of funding that is required (lump sum, annual contributions, or monthly investment).