Investment Simulator Is saving $500 a month for 18 years enough for college tuition?
See how a $500 monthly plan compares with projected in-state, out-of-state and private college tuition and fees.
Saving $500 a month for 18 years could cover four years of average public in-state tuition and fees. At a 5% effective annual return, the balance reaches $173,332. With 3% annual tuition growth, that exceeds the projected in-state benchmark of $87,534 but falls short of the out-of-state and private nonprofit benchmarks.
Compare three four-year college paths
College Board reported the following average published tuition and fees for full-time undergraduates in 2026–27. The four-year estimates apply 3% tuition growth each year, with the first bill 18 years from now and the last in year 21. This comparison assumes the balance earns no return after college starts. College Board’s 2026 college pricing figures
| College type | 2026–27 annual tuition and fees | Projected four-year total | Share covered by $173,332 |
|---|---|---|---|
| Public four-year, in-state | $12,290 | $87,534 | 198% |
| Public four-year, out-of-state | $32,730 | $233,114 | 74% |
| Private nonprofit four-year | $46,350 | $330,121 | 53% |
The in-state projection leaves about $85,798 after tuition and fees. You could compare that amount with a separate budget for housing, food, books and transportation. For the out-of-state option, the modeled tuition gap is about $59,782. Grants and scholarships can reduce what a family pays relative to the published price.
Check what happens when the return changes
With a $0 starting balance and 216 beginning-of-month deposits, you contribute $108,000. The ending balance would be $108,000 at 0%, $142,759 at 3%, $173,332 at 5%, or $211,649 at 7% effective annual return, before taxes and fees. Even the 7% scenario falls short of the average out-of-state tuition target when tuition grows 3% annually. At 5% tuition growth, the in-state target rises to $127,482, above the 0% savings scenario.
Run the comparison with your own target
In Investment Simulator, enter $0 up front, $500 per month, 5% for the yearly rate and 18 years. Leave taxes, inflation and additional deposits at zero to reproduce this future-dollar projection. Try a lower return and a higher tuition-growth assumption separately to see which has the bigger effect on your expected gap.
Compare the $200 monthly plan for public in-state tuition or the $100 monthly plan for community college.