Cost of Waiting Tool
Saving for college early gives your money more time to grow
The sooner you start saving for college, the quicker you can take advantage of compounding interest and
the longer you will have to grow your savings. Though it's never too late to begin, when your child is
very young is an ideal time to start saving. This calculator estimates the cost of waiting and shows you
approximately how much more you'll need to save if you don't start soon.
For the purposes of this calculator, college costs include tuition, fees, room & board, books & supplies,
as supplied to the College Board and WMSI from the institutions. The average costs are based on two and four
year, public and private colleges nationally. There are different kinds of institutions in each region, and
because of this, there may be a large variation in the actual costs for specific institutions.
This calculator assumes that overall college costs (education cost inflation) will increase each year by
the rate you selected for each child's costs, with a default of 5%. The impact of inflation on higher education
expenses is uncertain and the rate of inflation could exceed the rate of return on your investments. This
calculator also allows you to enter your hypothetical average annual rate of return. You may wish to choose
a conservative hypothetical annual rate of return. The default is 6% if you do not choose a different
The savings goals depicted by this calculator are an estimate based on certain assumptions and cannot
guarantee that the sufficient amount of money will be saved. The calculation results are estimates based on
the information you have provided. To help understand and use the calculation output effectively, please
note the following items:
This calculation is for hypothetical purposes only. The information entered may vary from actual individual
circumstances. The calculation relies on certain assumptions in addition to the information you provided and
does not guarantee future performance of any investment option. The Ohio Tuition Trust Authority will not be
liable for any damages arising from the use or misuse of this calculator or from any errors or omission in the
same. Use of this calculator does not in any way establish any agreement or relationship between the Ohio Tuition
Trust Authority and any individual who is not an account owner of the Ohio Tuition Trust Authority, nor does it
alter in any way the agreement between the Ohio Tuition Trust Authority and any account owner, which is contained
in the Plan Offering Statement and Participation Agreement. The calculator should not be solely relied upon when
making investment decisions.
Any calculation does not take into account the costs or fees associated with (1) transferring assets between the
accounts, (2) the differences in the rate of return on investments within the account, (3) investing in the Plan
(i.e., total average fee), or (4) the effect of federal and/or state taxes.
This calculator allows you to enter your hypothetical average annual rate of return.
State income tax rules on how withdrawals are handled may vary. The calculator results do not take
into account any state tax issues.
If your state offers a 529 plan you may want to consider what, if any, potential state income tax or other
benefits it offers, before investing. State tax or other benefits should be one of many factors to be considered
prior to making an investment decision. Please consult with your financial, tax or other advisor about how these
state benefits, if any, may apply to your specific circumstances.
Ohio taxpayers receive a state tax benefit for investing with CollegeAdvantage. See the Plan Offering
Statement for specific details.