Benefits of Saving Calculator
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per month toward college
Monthly Savings Goal
Use the slider to see how your savings go up the more you contribute each month
Federal Tax Rate
State Tax Rate
Your Results
Tax-Advantaged: compare savings in a tax-free account vs. a taxable account
After 10 years, you’ll have $0 or $0 more in a tax-free account than in a taxable account based on your federal tax rate of 24% and state tax rate of 6.75%.
Earnings in a 529 savings plan grow federal and state tax free and are excluded for income tax purposes when used for qualified higher-education expenses.
Earnings: compare savings with earnings vs. borrowing and repaying with interest
- Your $6,450 in total contributions (including balance today and monthly contributions) may earn -$6,450 in total interest using a 5% hypothetical rate of return, amounting to $0.
- If you were to borrow $0 over a 10-year period at a 6.39% interest rate, you would need to pay back that principal plus $0 in interest for overall loan payments of $0 as compared to your total contributions of $6,450.
- Your benefit of saving now versus borrowing later is estimated $0 - $6,450 equaling -$6,450.
The savings amounts depicted by the Benefits of Saving Calculator are estimates based on certain assumptions. There is no guarantee that savings projected will be achieved. The calculations are for hypothetical purposes only.
The Benefits of Saving Calculator is supplied, maintained, and powered by Invite Education, LLC. The user decides what inputs to enter into the calculator and FAME makes no recommendation in that regard. The Benefits of Saving Calculator is (i) not part of the NextGen 529 Program and (ii) not affiliated with FAME. By using the Calculator, the user is not establishing a customer relationship with the NextGen 529 Program or FAME. Neither Invite Education, LLC nor FAME guarantees the accuracy, suitability or usefulness of these results, and neither Invite Education, LLC nor FAME shall be responsible for any investment or trading decisions, gains or losses, or advice resulting from this analysis.
Information about Maine Grants that may be presented in this tool assumes certain qualifying conditions, including, but not limited to, being a Maine resident account owner or student (beneficiary). Learn more about NextStep Matching Grant, Alfond Grant and other Grants for Maine Residents.
These calculations are for hypothetical and general information purposes only. The information entered may vary from actual individual circumstances. The calculations rely on certain assumptions in addition to the information you provided and do not guarantee future performance of any investment option. The Finance Authority of Maine (FAME) will not be liable for any damages arising from the use or misuse of this calculator, reliance on calculated results, or from any errors or omission in the same.
Any calculation does not take into account the costs or fees associated with (1) transferring assets between accounts, (2) the differences in the rate of return on investments within the account, or (3) investing in the Plan (i.e., total annual fee).
This calculator allows you to enter your hypothetical annual rate of return. The default rate used in this calculation is 5% if you do not choose a different hypothetical rate of return. Investments that tend to earn a higher rate of return in the long run may be more subject to changes in value. There is no guarantee that you will receive the rate of return that you use in this calculation.
The borrowing related information in the tool is for general information purposes and assumes the loan is made at a fixed interest rate where the rate remains constant over the life of the loan. The loan calculations include some simplifying assumptions. The interest rate used may or may not be applicable to your borrowing situation.
All investing is subject to risk, including the possible loss of the money invested.
For more information about the NextGen 529 Plan see the Program Description for details, which includes disclosure regarding investment objectives, risks, charges, expenses and other information, and read it carefully before investing.
If you are not a resident of Maine, consider before investing whether your or the designated beneficiary's home state offers any state tax or other state benefits such as financial aid, only available for investments in your home state's qualified tuition program. This tool does not constitute tax advice. Please consult your own tax advisor for more information on the tax implications of investing in a 529 plan based on your own particular circumstances.
The above tool is powered and maintained by Invite Education, LLC and the content is solely maintained by Invite Education, LLC and its suppliers and affiliates.
Investments in 529 college savings plans are neither FDIC insured nor guaranteed and may lose value.
This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.