How to Calculate Estimated Four-Year College Costs
If you want to start saving regularly for your child's education, the following steps will help you estimate the amount that you will need to set aside. Tables 1 and 2 will be used in making your calculations.
Table 1
Inflation Factor
Years Until
College
4%
6%
8%
10%
1 1.04 1.06 1.08 1.10
2 1.08 1.12 1.17 1.21
3 1.12 1.19 1.26 1.33
4 1.17 1.26 1.36 1.45
5 1.22 1.34 1.47 1.61
6 1.27 1.42 1.59 1.77
7 1.32 1.50 1.71 1.95
8 1.37 1.59 1.85 2.14
9 1.42 1.69 2.00 2.36
10 1.48 1.79 2.16 2.59
11 1.54 1.90 2.33 2.85
12 1.60 2.01 2.52 3.14
13 1.67 2.13 2.72 3.45
14 1.73 2.26 2.94 3.80
15 1.80 2.40 3.17 4.18
16 1.87 2.54 3.43 4.59
17 1.95 2.69 3.70 5.05
18 2.03 2.85 4.00 5.56
Table 2
Investment return, after taxes, of:
Years Until
College
4%
6%
8%
1 .981 .971 .962
2 .481 .471 .463
3 .314 .305 .296
4 .231 .222 .213
5 .181 .172 .164
6 .148 .139 .131
7 .124 .116 .108
8 .106 .098 .090
9 .093 .085 .077
10 .082 .074 .066
11 .073 .065 .058
12 .065 .058 .051
13 .059 .051 .045
14 .054 .046 .040
15 .049 .042 .035
16 .045 .038 .032
17 .041 .034 .029
18 .038 .031 .026
Source: College Costs, 2000-2001 ed., reprinted with permission from LIMRA International, Inc., Hartford, CT 06141.
A Step-By-Step Worksheet for Determining College Costs
(1) Your child's age
____________________
(2) Enter the number of years until your child begins college.
____________________
(3) Enter the estimated current annual cost of college, selected from the here:
____________________
(4) Multiply this by an inflation factor selected from Table 1
____________________
(5) This equals your child's future annual college cost.
____________________
(6) Multiply this by 2 for a two-year college or 4 by a four-year college
____________________
(7) Your child's estimated future college cost
$___________________
(8) Select from Table 2 the investment factor for the investment return that you expect to acheive after taxes.
____________________
(9) Multiply the estimated cost in Step 7 by the investment factor in Step 8. This is the amount of money that you need to put aside regularly each year to fund your child's education; divide this amount by 12 to obtain the monthly figure, and by 52 to obtain the weekly figure.
$____________________
Yearly savings =
Monthly savings =
Weekly savings =
$____________________
$____________________
$____________________
Academics, College Planning March 10th, 2008
How to Calculate Estimated Four-Year College Costs
If you want to start saving regularly for your child's education, the following steps will help you estimate the amount that you will need to set aside. Tables 1 and 2 will be used in making your calculations.
Table 1
Inflation Factor
Years Until
College
4%
6%
8%
10%
1 1.04 1.06 1.08 1.10
2 1.08 1.12 1.17 1.21
3 1.12 1.19 1.26 1.33
4 1.17 1.26 1.36 1.45
5 1.22 1.34 1.47 1.61
6 1.27 1.42 1.59 1.77
7 1.32 1.50 1.71 1.95
8 1.37 1.59 1.85 2.14
9 1.42 1.69 2.00 2.36
10 1.48 1.79 2.16 2.59
11 1.54 1.90 2.33 2.85
12 1.60 2.01 2.52 3.14
13 1.67 2.13 2.72 3.45
14 1.73 2.26 2.94 3.80
15 1.80 2.40 3.17 4.18
16 1.87 2.54 3.43 4.59
17 1.95 2.69 3.70 5.05
18 2.03 2.85 4.00 5.56
Table 2
Investment return, after taxes, of:
Years Until
College
4%
6%
8%
1 .981 .971 .962
2 .481 .471 .463
3 .314 .305 .296
4 .231 .222 .213
5 .181 .172 .164
6 .148 .139 .131
7 .124 .116 .108
8 .106 .098 .090
9 .093 .085 .077
10 .082 .074 .066
11 .073 .065 .058
12 .065 .058 .051
13 .059 .051 .045
14 .054 .046 .040
15 .049 .042 .035
16 .045 .038 .032
17 .041 .034 .029
18 .038 .031 .026
Source: College Costs, 2000-2001 ed., reprinted with permission from LIMRA International, Inc., Hartford, CT 06141.
A Step-By-Step Worksheet for Determining College Costs
(1) Your child's age
____________________
(2) Enter the number of years until your child begins college.
____________________
(3) Enter the estimated current annual cost of college, selected from the here:
____________________
(4) Multiply this by an inflation factor selected from Table 1
____________________
(5) This equals your child's future annual college cost.
____________________
(6) Multiply this by 2 for a two-year college or 4 by a four-year college
____________________
(7) Your child's estimated future college cost
$___________________
(8) Select from Table 2 the investment factor for the investment return that you expect to acheive after taxes.
____________________
(9) Multiply the estimated cost in Step 7 by the investment factor in Step 8. This is the amount of money that you need to put aside regularly each year to fund your child's education; divide this amount by 12 to obtain the monthly figure, and by 52 to obtain the weekly figure.
$____________________
Yearly savings =
Monthly savings =
Weekly savings =
$____________________
$____________________
$____________________
How to Calculate Estimated Four-Year College Costs
If you want to start saving regularly for your child's education, the following steps will help you estimate the amount that you will need to set aside. Tables 1 and 2 will be used in making your calculations.
Table 1
Inflation Factor
Years Until
College
4%
6%
8%
10%
1 1.04 1.06 1.08 1.10
2 1.08 1.12 1.17 1.21
3 1.12 1.19 1.26 1.33
4 1.17 1.26 1.36 1.45
5 1.22 1.34 1.47 1.61
6 1.27 1.42 1.59 1.77
7 1.32 1.50 1.71 1.95
8 1.37 1.59 1.85 2.14
9 1.42 1.69 2.00 2.36
10 1.48 1.79 2.16 2.59
11 1.54 1.90 2.33 2.85
12 1.60 2.01 2.52 3.14
13 1.67 2.13 2.72 3.45
14 1.73 2.26 2.94 3.80
15 1.80 2.40 3.17 4.18
16 1.87 2.54 3.43 4.59
17 1.95 2.69 3.70 5.05
18 2.03 2.85 4.00 5.56
Table 2
Investment return, after taxes, of:
Years Until
College
4%
6%
8%
1 .981 .971 .962
2 .481 .471 .463
3 .314 .305 .296
4 .231 .222 .213
5 .181 .172 .164
6 .148 .139 .131
7 .124 .116 .108
8 .106 .098 .090
9 .093 .085 .077
10 .082 .074 .066
11 .073 .065 .058
12 .065 .058 .051
13 .059 .051 .045
14 .054 .046 .040
15 .049 .042 .035
16 .045 .038 .032
17 .041 .034 .029
18 .038 .031 .026
Source: College Costs, 2000-2001 ed., reprinted with permission from LIMRA International, Inc., Hartford, CT 06141.
A Step-By-Step Worksheet for Determining College Costs
(1) Your child's age
____________________
(2) Enter the number of years until your child begins college.
____________________
(3) Enter the estimated current annual cost of college, selected from the here:
____________________
(4) Multiply this by an inflation factor selected from Table 1
____________________
(5) This equals your child's future annual college cost.
____________________
(6) Multiply this by 2 for a two-year college or 4 by a four-year college
____________________
(7) Your child's estimated future college cost
$___________________
(8) Select from Table 2 the investment factor for the investment return that you expect to acheive after taxes.
____________________
(9) Multiply the estimated cost in Step 7 by the investment factor in Step 8. This is the amount of money that you need to put aside regularly each year to fund your child's education; divide this amount by 12 to obtain the monthly figure, and by 52 to obtain the weekly figure.
$____________________
Yearly savings =
Monthly savings =
Weekly savings =
$____________________
$____________________
$____________________
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