Child Education Planning Calculator
Your child's dream college could cost three to four times more by the time they're ready for it. Education costs in India have been rising at 8–10% a year for years. This calculator helps you stay ahead — enter your child's age, the course you're planning for, and your expected return, and it shows exactly how much to set aside every month starting now.
Education Parameters
₹14,469
Monthly SIP Needed
₹54,39,247
Future Education Cost
₹22,57,122
Total You Will Invest
₹34,39,247
Extra Due to Inflation
Education Corpus Growth
Returns shown are estimated projections. Actual returns may vary. Mutual fund investments are subject to market risks. Past performance is not indicative of future results.
Plan Your Child's Future
Our experts will suggest the best funds for your child's education goal.
Education Planning Tips
- →Education inflation in India averages 8–10% annually — higher than general inflation
- →Start when the child is born for maximum benefit of compounding
- →Use equity MFs in early years; gradually shift to debt as the goal approaches
- →Review your education corpus every 2 years and increase SIP if needed
- →Consider ELSS for tax savings in early years of investment
How education planning works
Education planning has two things most calculators miss: education costs inflate faster than general prices, and there's a hard deadline — the year your child applies. This calculator accounts for both.
The calculator inflates today's course cost to what it will actually cost in the year of admission, then works backwards to find the monthly SIP that builds that corpus in time.
Worked example
Your child is 3 years old today. You're targeting an IIT engineering degree, currently costing about ₹12 lakh all-in. At 8% education inflation over 15 years, that degree will cost roughly ₹38 lakh when your child turns 18. To build ₹38 lakh in 15 years at a 12% return, you need to invest around ₹7,800 every month starting now. Start when the child is 8 instead, and that monthly amount nearly triples to ₹19,200. The earlier you start, the easier it gets.
When to use this versus our other tools
This calculator helps you find the monthly SIP for a specific education goal and deadline. Once you have that number, use the Step-Up SIP Calculator if you expect your income to grow over the years — it can reduce the pressure in early years. For a postgrad goal 5–7 years away, a hybrid fund may suit better than a pure equity fund.
Frequently Asked Questions
What education inflation rate should I use?▾
8–10% for most Indian colleges. Private medical and overseas programmes inflate faster — use 10–12% for those. IIT and IIM fees have historically risen at 6–8% per year.
What return rate should I assume?▾
For a horizon of 10 years or more, 11–12% from an equity fund is reasonable. For a 5–7 year goal, 9–10% from a hybrid or balanced advantage fund is safer. Avoid pure equity for goals less than 5 years away.
Which mutual fund is best for education planning?▾
Several AMCs offer dedicated Children's Gift funds. A regular diversified equity fund or an ELSS fund with a lock-in aligned to the admission year works equally well. Consistent investing matters more than the fund name.
Should the investment be in my name or my child's name?▾
In your name. Minors cannot independently hold mutual fund folios until they turn 18. A joint folio with the child as first holder is possible after age 10, with a guardian's consent.
What if I'm not sure about the exact cost of the course?▾
Add a 20% buffer on top of your inflated estimate. It's far better to over-save for an education goal than to fall short on a fixed deadline.
Is there a tax benefit for education savings?▾
There's no dedicated deduction for general education savings. ELSS funds offer a Section 80C deduction of up to ₹1.5 lakh per year — useful if the investment horizon aligns with the 3-year lock-in and the admission timeline.
What about Sukanya Samriddhi Yojana for a girl child?▾
SSY offers 8.2% returns (FY 2024-25) with 80C tax benefits and a tax-free maturity. But it's illiquid — it matures when your daughter turns 21 — and contributions are capped at ₹1.5 lakh per year. It works well as a debt anchor in a blended plan, but shouldn't replace an equity SIP for large education corpus targets.
Can I pause the SIP if money gets tight?▾
Yes — most fund houses allow a pause without penalties. Recommitting after a pause matters more than the few months you missed.