How fast do education costs rise in India?

Education inflation in India has historically been 8-12% per year, significantly higher than general CPI inflation of 5-6%. A course that costs Rs 20L today could cost Rs 52-62L in 10 years at 10% education inflation.

Should I use a lumpsum or SIP for education planning?

This depends on your current savings and income. If you have idle funds, a lumpsum invested today needs a smaller amount (compounded over the full period). If you are building savings over time, SIP is more practical. This calculator shows both options.

Which mutual funds are good for children's education?

For a 10+ year horizon, diversified equity funds or balanced advantage funds work well. For 5-7 years, hybrid funds reduce volatility near the goal date. As the goal approaches (2-3 years away), gradually shift to debt funds to protect the corpus.

What is the education inflation rate for abroad education?

Education costs for overseas universities (USA, UK, Canada, Australia) are subject to local inflation plus INR/USD exchange rate movement. A combined effective rate of 10-15% is realistic for planning purposes.

Education Planning Calculator

Plan for your child education by calculating the inflation-adjusted future cost and finding the monthly SIP or lumpsum needed to fund it.

Current Education Cost

₹

₹1,00,000₹2,00,00,000

Twenty Lakh Rupees

Today's cost of the course/college you are planning for.

Years to Education

yrs

1 yrs20 yrs

Education Inflation Rate

3%20%

Education costs in India have risen 8-12% per year historically.

Expected Investment Return

5%25%

Future Education Cost

₹62.77 L

Today's cost: ₹20.00 L

Lumpsum to Invest Today

₹16.11 L

Monthly SIP Required

₹19,478

Results shown are estimates based on assumed annual returns and are for illustrative purposes only. Actual returns will vary.

What is education planning?

Education planning calculates the future cost of a degree, accounting for education-specific inflation, and the monthly SIP or lumpsum needed today to fund it. Education inflation in India typically runs higher than general inflation - often 8-10% per year - so a degree that costs ₹15 lakh today can cost ₹50-60 lakh by the time a 1-year-old enters college. This calculator takes the current cost, the years until your child needs it, and education inflation, and gives you both the future cost in rupees and the monthly SIP needed to build that corpus.

How to use the Education Planning Calculator

Enter the current cost of the education. What the degree costs today in today's rupees.
Enter years until you need the money. Time from today to when your child enters college.
Set education inflation. Use 8-10% - higher than general inflation, especially for professional degrees.
Set the expected investment return. 12% for long-term equity is a reasonable assumption.
Review the future cost and required SIP. See the future cost and the SIP needed to build that corpus.

Formula and method

Future cost = Today's cost × (1 + edu inflation)^years SIP = Future cost × r / [((1+r)^n − 1) × (1+r)] Lumpsum today = Future cost / (1 + return)^years

Education inflation is compounded over the years until college. The required SIP or lumpsum is back-solved to reach exactly the future cost at the chosen return.

Why education planning needs its own calculator

Education inflation is brutal. Often 1.5-2× general inflation. ₹15 lakh today can be ₹50 lakh in 18 years.
The deadline is fixed. Your child enters college whether or not the corpus is ready.
Equity has time on its side. A 15-year horizon is ideal for equity SIPs.
Plan well, sleep well. Knowing the SIP is set turns anxiety into a system.
Account for Sukanya Samriddhi for a girl child. SSY's 8.2% tax-free is a strong complement to equity SIPs.

Education Planning Calculator

What is education planning?

How to use the Education Planning Calculator

Formula and method

Why education planning needs its own calculator

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