Financial Calculators
Child Education Calculator
Education inflates faster than almost anything else. Price the goal honestly, then fund it with a SIP.
Invest every month
₹15,717
to fund the goal in 15 years
- Cost today
- ₹25,00,000
- Cost in 15 years
- ₹79,30,423
Estimates are for illustration only, based on the assumptions you enter. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
Price the goal in its own year, not today's
Parents consistently underestimate education costs because they price them in today's rupees. Professional courses have inflated at 8 to 10% a year, roughly doubling every eight or nine years. This calculator inflates today's cost to the admission year, then computes the monthly SIP that reaches that number in time.
Started early, the SIP is modest and equity funds can do the heavy lifting. Started late, the same goal demands painful monthly amounts or an education loan. The difference is purely the start date.
How the calculation works
Future cost = today's cost x (1 + education inflation)^years\nRequired SIP = Future cost / SIP annuity factor at your expected returnWorked example: a course costing Rs 25,00,000 today, admission in 15 years, 8% education inflation and 12% expected return. The future cost is about Rs 79,30,423, and a monthly SIP of about Rs 15,717 funds it fully.
Frequently asked questions
What education inflation should I use?
8% is a reasonable base for Indian professional education; use 10% for foreign education to be safe, since currency movement adds to fee inflation.
Should this money be in equity?
With ten or more years to go, largely yes; that is where inflation-beating growth lives. From about three years before admission, we progressively shift the corpus to debt funds so a market fall cannot collide with a fee deadline.
What if I already have some savings for this?
Reduce the target by the projected value of what you have, then compute the SIP on the balance. We do this netting in every plan review.
Is the projection guaranteed?
No. It is an illustration based on your assumptions. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
Give the goal a name and a date.
We build education plans with a de-risking glide path, so the money is there when the admission letter is.