How this number is made
A 529 grows tax-free when the money is used for qualified education. This page is only the growth, using the same monthly compounder as the other savings pages. It does not know your state’s tax deduction.
- The rate is an assumption for the investments inside the account, not a promise of the plan.
- Qualified withdrawals and penalties are not modeled.
Formula
Future value of the balance plus the future value of the monthly deposit, compounded monthly.
Worked example
With the figures already in the form, balance if the return holds is $58,436.
Questions
What if I do not use it for school?
Non-qualified withdrawals of earnings are generally taxed and penalized, with exceptions that have changed over time. This page assumes the balance is simply the invested result.
Does my state match or deduct contributions?
Some do. The deduction is not included. It would lower your state tax, not raise the balance inside the account except for an actual match.