Child Education Planner
Estimate the inflation-adjusted future cost of your child's higher education and calculate the monthly SIP required to reach it.
Note: Higher education inflation in India is typically around 10-12% p.a., much higher than retail inflation.
Projected College Cost vs Current Savings Value
Frequently Asked Questions
Why is education inflation higher than standard inflation in India?
Standard consumer inflation (CPI) is around 5-6%, but higher education inflation ranges from 10% to 12% p.a. in India. Tuition fees, hostel accommodations, admission demands, and ancillary items increase at a much faster rate, meaning a course costing ₹10 Lakhs today will cost over ₹25 Lakhs in 10 years.
What are the best investment options for a child's education?
For timelines longer than 7 years, equity-oriented mutual funds through monthly SIPs offer the best compounding power to beat inflation. For a girl child, the Sukanya Samriddhi Yojana (SSY) provides high tax-free yields. As the college target approaches (last 3 years), funds should be shifted to liquid debt funds to protect capital.
Related Articles
Engineering or Medicine in 2040? Here's What It Will Cost (It's a Lot)
In 2024, a private engineering college in India charges ₹3–6 lakh per year. A private medical college: ₹10–25 lakh per year. An MBA from a top institution: ₹25–35 lakh for the full program. These are today's numbers. Now add 10% education inflation per year for 15 years.
That ₹5 lakh/year engineering degree becomes ₹20.8 lakh/year by 2040. A 4-year program costs ₹83 lakhs in today's planning — not 20 lakhs. Most parents are planning for the wrong number because they're not accounting for education inflation.
The Child Education Planner calculates the inflation-adjusted corpus required for your child's education and the monthly SIP needed to reach it. The inputs: child's current age, expected education start age, current estimated cost, education inflation rate, and expected investment return.
For a 3-year-old whose education starts at 18: you have 15 years. At 10% education inflation and a ₹5 lakh/year current cost: you need ₹1.04 crore target corpus (4 years). At 12% SIP return, you need ₹18,500/month starting today. Starting 5 years late (child age 8), the same goal requires ₹42,000/month. Start early. The numbers are unforgiving.
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