Child Education Planner
Plan the SIP needed for a future education goal.
Retirement & GoalsAbout the Child Education Planner
What This Child Education Planner Does
Education costs in India have historically risen faster than general inflation, which means a course that costs a certain amount today is likely to cost significantly more by the time a young child is ready for it. This calculator projects that future cost and works out the monthly SIP needed to be ready for it.
The Formula
The calculator first inflates today's education cost forward using your chosen education-specific inflation rate and the number of years until the goal, the same compounding formula used by the Inflation Calculator. That inflated future cost then becomes the target in the standard goal-SIP formula, solved using your expected investment return over the same period, to find the required monthly contribution.
How to Use It
Enter today's cost of the education goal you're planning for (a specific course, or a general estimate for a future school or college), how many years away the goal is, an education-specific inflation rate, and the return you expect on your SIP investment. The calculator shows both the inflated future cost and the monthly SIP needed to reach it.
Why a Separate, Higher Inflation Rate for Education
General consumer inflation and education-cost inflation are not the same number - tuition, especially for professional and higher education, has often risen faster than overall prices in India. Using a deliberately higher inflation assumption for this specific goal, rather than a generic rate, helps avoid under-saving for what is often one of the largest single financial goals a family plans for.
Who This Is For
Parents or guardians planning ahead for a child's school, college, or professional education costs, who want a concrete monthly savings target rather than a rough guess.
Quick Example
A course costing ₹10,00,000 today, 12 years away, at 8% education inflation, is projected to cost approximately ₹25,18,170 by the time it's needed - requiring a monthly SIP of roughly ₹7,814 at an assumed 12% return to be fully funded by then.