Goal Planning

Child Education Planner

Project your child's inflation-adjusted education cost and find the monthly SIP needed to fund the goal on time.

Years Left

Inflation-Adjusted Goal

Gap to Fund

Required Monthly SIP

Goal Funding Breakdown

Education inflation is typically higher than general inflation. SIP calculated using FV Annuity Due formula with monthly compounding. Results are indicative only.

What is a Child Education Planner?

A Child Education Planner calculates how much you need to invest monthly today to fund your child's higher education in the future — accounting for education inflation. Education costs in India have been rising at 8–10% annually, significantly outpacing general inflation. A goal that costs ₹20 lakh today could cost ₹60–80 lakh by the time your child is 18.

The planner works backwards from an inflation-adjusted future goal to compute the exact monthly SIP required. It also accounts for any existing investments you've already made for this goal, reducing the required SIP accordingly. Starting early is crucial — even a few extra years of compounding can halve the monthly SIP needed.

How to Use This Child Education Planner

  1. 1

    Enter your child's current age and education start age

    The difference gives your investment horizon. If your child is 5 and higher education starts at 18, you have 13 years — enough time for compounding to work significantly.

  2. 2

    Enter the goal amount in today's value

    Think of what a quality education costs today — engineering/medical: ₹15–50 lakh, IIM/IIT: ₹25–50 lakh, abroad: ₹50 lakh–₹2 crore. The planner inflates this to future cost automatically.

  3. 3

    Set education inflation and SIP return rate

    Use 8% for education inflation (higher than general ~6%). Use 12% for diversified equity SIPs. The gap between inflation and return determines how fast you need to save.

  4. 4

    Add any existing investments

    If you've already invested in Sukanya Samriddhi, PPF for child, or mutual funds for this goal, enter the current corpus. The planner projects its growth and reduces the monthly SIP required.

Why Start Planning Early?

Time Reduces SIP Dramatically

Starting when your child is 2 instead of 12 can reduce the monthly SIP by 60–70% for the same goal — the power of a longer compounding runway.

Education Inflation is Real

Education costs have been rising at 8–10% annually. What costs ₹20 lakh today will cost ₹50–60 lakh in 15 years. Planning today prevents financial stress tomorrow.

Dedicated Goal-Based Investing

Keeping a separate investment for your child's education prevents dipping into retirement savings and ensures the money is available when needed most.

More Options for Your Child

A well-funded education corpus gives your child the freedom to choose their preferred institution — domestic or abroad — without being constrained by financial limitations.

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FAQs

Frequently asked questions

How much does higher education cost in India?

Top engineering colleges cost ₹10–25 lakh for 4 years, MBA programs ₹15–30 lakh for 2 years, and medical education ₹50 lakh–1 crore+. International education runs ₹30–80 lakh. Education costs have been inflating at 10–12% annually — roughly double general inflation.

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

Ideally, start from birth. With education inflation at 10–12%, starting early gives your investments more time to compound. Even ₹5,000/month started at birth can grow to ₹25–30 lakh by age 18 at 12% returns.

Which investment is best for a child education fund?

For goals 10+ years away, equity mutual fund SIPs offer the best growth potential. As the goal nears (3–5 years away), gradually shift to debt funds or FDs. Avoid child-specific insurance plans — they typically underperform compared to a combination of term insurance + mutual fund SIPs.

How does inflation affect education costs?

Education inflation in India runs at 10–12% per year, nearly double the general CPI inflation. A course costing ₹10 lakh today will cost approximately ₹26 lakh in 10 years and ₹67 lakh in 20 years. This calculator factors in education-specific inflation.