Part 2: What Will College Actually Cost When Your Child Enrolls?

In Part 1, we calculated how much college costs in today's dollars. But unless your child is heading to college next year, you need to account for inflation. College costs have been rising faster than general inflation—and that matters for your savings target.

The good news: the math is straightforward once you understand the key factors. Let's turn those "today's dollar" estimates into the actual future amount you need to save.

What Inflation Rate Should You Use?

You've probably heard scary projections about college costs rising 6-8% per year. While this was true in past decades, college cost inflation has slowed significantly in recent years due to competition and enrollment pressure.

Converting Today's Costs to Future Costs

In Part 1 we calculated the amount we need in today's dollars. The math to calculate how much we need in the future is simple:

Calculate Your Future College Cost

Use the calculator below to see how inflation affects your college savings target:

Don't Panic!

Don't worry if this number looks even scarier with inflation particularly if you have a number of years before your child goes to college. In the next step we will look at how saving and investing can time can build towards this goal.