Education Fund Calculator.

On this page, you will:

• learn how to use an online calculator to instantly find out how much you need to save towards your college education fund.

When you are planning for a 1 or 2 years fund, you can often do the maths quickly on a piece of paper. However, when you plan to save for many years then use online calculator to do the maths for you.

Steps on how to calculate your monthly savings.

I find this education fund calculator from www.finaid.org easy to use.

1. If you have no savings set aside for college education then input 0 for Current Savings
   
   
2. 2. If the money you plan to set aside can generate 8% return a year, then input 8% for Interest Rate on Savings
   
   
3. 3. If your child will start college education 12 years from now, then input 12 for Years to Enrollment.
   
   
4. If you plan to contribute monthly, then select Monthly for Contribution Frequency
   
   
5. For Savings Goal click on the 2nd button.
   If you plan to fund 80% of the total cost, then input 80%
   Input the current average cost of college education per year. You can use the costs you have estimated earlier, or the $12,796 and $30,367.
   
   
6. Input the annual inflation rate for the college education cost.
   
   
7. Press Calculate. You will be presented with a Savings Plan report. If the monthly savings is too high for your comfort, then you may adjust the % of your contribution towards the total costs. Or you may save less now but make up for it later by contributing larger portions when you earn higher income.
   
   
8. Once you are satisfied, print out the Savings Plan for future reference.

Related Articles:

• Planning Your College Education Fund.