Why Plan Your Child's Education Early?
Higher education costs in India have often risen faster than general prices. A course that costs ₹20 lakh today could cost three to four times as much by the time your child is ready for it.
Starting early gives your money more years to grow, so the monthly amount you need stays manageable. It also means you are less likely to need a big education loan.
How to Use This Child Education Calculator
- Course cost today: the full cost of the course at today's prices, including fees and living costs.
- Child's current age and the age when the course starts.
- Education inflation: how fast you expect the cost to rise each year.
- Already saved and the expected return on your investments.
You will see the future cost, the monthly SIP needed, and the lump sum you could invest today instead. The table above tracks your progress each year.
How the Education Goal Is Calculated
- Gap = Future cost − future value of what you have already saved
- Monthly SIP = amount that grows into the gap by the start date
Example: child aged 5, ₹20 lakh course at 18
- At 10% education inflation, the course will cost about ₹69.05 lakh in 13 years.
- Your ₹1 lakh already saved can grow to about ₹4.36 lakh at 12%.
- You need a SIP of about ₹17,206 a month, or about ₹14.82 lakh invested today.
What Education Could Cost in 13 Years
At 10% education inflation:
| Course cost today | Cost in 13 years |
|---|---|
| ₹10 lakh | ₹34.52 lakh |
| ₹20 lakh | ₹69.05 lakh |
| ₹50 lakh | ₹1.73 crore |
Start Early, Pay Less Every Month
A ₹20 lakh course (today's cost) starting at age 18, with no savings yet, 10% education inflation and 12% returns:
| Start investing when child is | Years to go | Future cost | Monthly SIP needed |
|---|---|---|---|
| Newborn | 18 | ₹1.11 crore | ₹14,527 |
| 5 years old | 13 | ₹69.05 lakh | ₹18,367 |
| 10 years old | 8 | ₹42.87 lakh | ₹26,542 |
| 15 years old | 3 | ₹26.62 lakh | ₹61,185 |
Starting at birth needs the smallest monthly SIP, even though the final cost is the highest. Waiting until 15 needs more than four times as much every month.
How Education Inflation Changes Your Goal
Same ₹20 lakh course for a 5-year-old, with ₹1 lakh already saved:
| Education inflation | Future cost | Monthly SIP needed |
|---|---|---|
| 8% | ₹54.39 lakh | ₹13,308 |
| 10% | ₹69.05 lakh | ₹17,206 |
| 12% | ₹87.27 lakh | ₹22,054 |
Where to Invest for Your Child's Education
- More than 7 years away: equity mutual funds through SIPs offer the best chance of beating education inflation.
- 3 to 7 years away: a mix of equity and debt funds to reduce swings.
- Less than 3 years away: shift gradually to safer options like FDs, RDs and debt funds, so a market fall does not hit the goal.
- For a girl child: Sukanya Samriddhi Yojana offers a government-backed fixed return. PPF is another safe, long-term option.
Tips for Parents
Don't mix education money with other savings.
Raise it a little every year as your income grows.
Term insurance ensures the plan continues even if something happens to you.
Make a separate plan for each child's goal and timeline.
Hostel, travel and books can add a lot, especially for studies abroad.
Update the course cost and your savings every year.
Frequently Asked Questions
How much should I save for my child's education?
Estimate the course cost today, grow it by education inflation until the course starts, and subtract what your current savings will grow to. This calculator does the maths and shows the monthly SIP needed.
What education inflation rate should I assume?
Many planners use 8–10% a year for education in India, and higher for professional courses or studying abroad, where currency changes also matter.
Where should I invest for my child's education?
For goals more than seven years away, equity mutual funds through SIPs are a common choice. Shift to safer options like FDs and debt funds in the last three years before the course starts.
What if I start late?
Starting late needs a much higher monthly amount. You can combine a higher SIP, a lump sum, a step-up SIP and, if needed, a partial education loan.
How do I plan for studying abroad?
Use the full cost including living expenses, and plan with a higher inflation rate, because a weaker rupee can raise the cost further.
Is an education loan a good option?
It can fill a gap, and interest on education loans can qualify for a tax deduction. But planning ahead keeps the loan small and avoids starting your child's career with debt.
