How this child education plan calculator works?
Enter your child's current age, the target education age, today's education cost, an inflation rate, and an expected return. The calculator inflates the cost to the goal year, then solves for the monthly SIP needed to reach that corpus. If you add current savings or choose a step-up, the SIP requirement adjusts accordingly.
Why education cost planning matters more than it used to?
Education costs have climbed faster than general inflation, and families now consider private, professional, and overseas options. That makes the gap between today's fees and future fees much larger, which is why planning early can reduce monthly stress later.
Education inflation in India and how to choose the right rate
When using an education inflation rate, a simple rule helps: 8% works for many Indian undergraduate programs, while 10-12% is more realistic for private, professional, or overseas-linked education. Use the higher end if you expect premium colleges or higher living costs.
What should you enter as "education cost today"?
The "education cost today" is the total cost in today's rupees for the course or education level you are planning for. This should include more than just tuition: course or college fees, hostel or accommodation costs, and books, equipment, or other mandatory expenses.
If you are planning for education in India, use the current cost of a similar course today. For overseas education, use today's estimated total cost in rupees, including living expenses.
You do not need to be exact. A reasonable estimate works better than an optimistic one. The calculator then adjusts this cost for inflation to show what the same education may cost in the future.
Common education cost ranges (India vs Overseas)
These ranges are estimates and can vary by institution, city, course, and year.
| Education type |
Typical duration |
Current cost range (today) |
| India - Private undergraduate degree |
3-4 years |
Rs. 8 lakh - Rs. 20 lakh |
| India - Professional courses (engineering, medicine, management) |
4-5+ years |
Rs. 15 lakh - Rs. 60 lakh |
| India - Private postgraduate degree |
1-2 years |
Rs. 6 lakh - Rs. 25 lakh |
| Overseas - Undergraduate degree |
3-4 years |
Rs. 60 lakh - Rs. 1.2 crore |
| Overseas - Postgraduate degree |
1-2 years |
Rs. 35 lakh - Rs. 80 lakh |
- Costs vary widely by institution, city, and course.
- Overseas education costs also carry currency risk, which inflation alone does not capture.
- Using the middle of a range is usually safer than using the lowest number.
- Once you pick a reasonable current cost, the calculator applies education inflation to show what the same education may cost when your child reaches that stage.
Understanding your required monthly SIP
The monthly SIP shown by the calculator is the amount needed to build the future education cost over the available time.
Three factors mainly decide this number:
- Time left until the education expense
- Expected investment return
- Target education cost after inflation
When the time available is longer, the required SIP is usually lower because investments get more time to grow. When the time is short, the SIP increases sharply, as there is less room for compounding.
This is why starting early matters. A small monthly amount invested over many years can reduce the need for large contributions closer to the goal.
The SIP shown is a planning estimate. Changing inputs like return assumptions or target age will immediately change the required monthly amount, helping you understand what is realistic for your situation.
What is a step-up SIP and when does it make sense?
A step-up SIP increases your monthly contribution by a fixed percentage each year. It is useful when you expect salary growth or variable income, and it can reduce the starting SIP while still reaching the same target corpus.
India vs overseas education planning - what changes?
Planning for overseas education is different from planning for education in India, even for the same level of study.
Key differences to consider:
- Cost base: overseas education usually starts at a much higher cost today.
- Inflation and currency: apart from education inflation, currency movement can significantly affect final costs.
- Time horizon: families planning overseas education often need a larger buffer and earlier start.
- Flexibility: overseas plans benefit more from conservative assumptions and higher safety margins.
For education in India, inflation tends to be the primary driver of future costs. For overseas education, both inflation and exchange rates play a role, which increases uncertainty.
When using the calculator for overseas plans, it is safer to use a higher inflation assumption, avoid optimistic return assumptions, and build a contingency buffer into the target cost. This approach reduces the risk of shortfalls when the actual expense arrives.
What this calculator does and does not cover
It covers: future cost projection, SIP requirement, step-up impact, and the effect of current savings.
It does not cover: taxes, scholarships, education loans, currency changes, portfolio volatility, or institution-specific fees. Use it as a planning estimate, then refine with real quotes.
FAQs
1. How accurate is this child education plan calculator?
The calculator gives a math-based estimate using your inputs, education inflation, and expected returns. It is useful for planning, but actual costs and returns may differ. Updating inputs over time keeps the estimate relevant.
2. What inflation rate should I use for education planning?
For most education plans in India, 8-10% is commonly used. For private, professional, or overseas education, 10-12% is more realistic. Using a conservative rate helps avoid underestimating future costs.
3. Can I use this calculator for overseas education planning?
Yes. Enter today's estimated overseas education cost in rupees, including living expenses. It is advisable to use a higher inflation assumption and keep a buffer, as currency movement can increase costs further.
4. Is SIP the only way to save for my child's education?
No. SIP is one structured way to save regularly. Some families also use lump-sum investments or a mix of both. The calculator focuses on SIP to show a disciplined, time-based savings approach.
5. What if my child's education plans change later?
Education plans often evolve. This calculator helps you plan with today's assumptions. You can revisit and adjust inputs as goals, timelines, or costs become clearer.
6. When should I start planning for my child's education?
The earlier you start, the easier it usually becomes. Starting early allows smaller monthly savings and gives investments more time to grow, reducing pressure closer to the education year.
