Education Planning Calculator Secure Your Child's Future

Plan and save for your child's education with inflation-adjusted calculations

Calculate the future cost of education and discover how much you need to save monthly to achieve your child's educational dreams.

Plan Child's Education

Estimated cost in today's value

💡 Tip: Education costs typically inflate at 8-10% annually in India, higher than general inflation. Start saving early to benefit from compound growth.

Why Education Planning Matters

Rising Education Costs

Education costs in India have been rising consistently at 8-10% per year, significantly outpacing general inflation. What costs ₹10 lakhs today could cost ₹20-25 lakhs in just 10 years.

  • Professional courses cost ₹5-30 lakhs
  • Study abroad can cost ₹50 lakhs+
  • Cost doubles every 7-9 years

Benefits of Early Planning

  • Power of compounding reduces monthly burden
  • No need for education loans and EMIs
  • More choices and opportunities for your child
  • Financial peace of mind for parents

How the Calculator Works

Our education planning calculator uses proven financial formulas to help you plan effectively:

Future Education Cost:

Future Cost = Current Cost × (1 + Inflation Rate)^Years

Monthly SIP Required:

Calculated using Future Value of Annuity formula with expected returns

• The calculator accounts for current savings and their growth over time

• It determines the additional amount needed to meet the education goal

• Monthly SIP is calculated to accumulate the shortfall with compound interest

Example: For ₹10L education in 13 years, with 8% inflation and 12% returns, starting with ₹1L savings, you'd need approximately ₹4,000 monthly SIP (This is a simplified example; actual results will vary based on precise calculations)

School Education

Premium private schools in metros can cost ₹2-5 lakhs per year for senior classes including fees, books, and activities.

Estimated: ₹5-15 lakhs total

Undergraduate

Engineering, medicine, or management degrees from top institutions can range from ₹10-30 lakhs for the entire course.

Estimated: ₹10-30 lakhs

Study Abroad

Master's programs in US, UK, or Australia including tuition, living expenses can cost ₹50 lakhs to ₹1 crore.

Estimated: ₹50L - ₹1Cr

Smart Investment Options for Education

1.

Equity Mutual Funds

Best for long-term goals (10+ years), potential 12-15% returns

2.

Public Provident Fund (PPF)

Safe government-backed option with tax benefits, ~7-8% returns

3.

Sukanya Samriddhi Yojana

For girl child, attractive interest rates and tax benefits

4.

Child Education Plans

Insurance-cum-investment plans with life cover

5.

Diversified Portfolio

Mix of equity, debt, and gold for balanced growth

6.

SIP in Index Funds

Low-cost, market-linked returns over long term

Frequently Asked Questions

When should I start saving for my child's education?

The earlier, the better! Starting when your child is born gives you 18 years to accumulate funds, making monthly contributions much smaller. Even starting at age 5 provides 13 years of compounding growth.

What inflation rate should I use for education costs?

Education inflation in India typically ranges from 8-10% annually, significantly higher than general inflation of 5-6%. Using 8-9% is a reasonable estimate for planning purposes.

What returns can I expect from education investments?

For long-term goals, equity mutual funds historically deliver 12-15% returns. For shorter timelines (5-7 years), balanced funds with 8-10% returns are safer. Adjust based on your risk appetite and timeline.

Should I take an education loan or save in advance?

Saving in advance is generally better as you avoid interest payments and debt burden. However, education loans can be useful for premium foreign universities if your savings fall short, as they offer tax benefits and reasonable interest rates.