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Secure Your Child's Future
The cost of higher education is rising much faster than standard inflation. An Education Planning Calculator helps parents estimate the future, inflated cost of degrees (like engineering, medical, or studying abroad) and determines the exact monthly Systematic Investment Plan (SIP) required today to build that necessary corpus by the time their child is ready for college.
Cost of Degree at Today's Value (₹)
Child's Current Age
College Start Age
Education Inflation Rate (% p.a.)
Expected Investment Return (% p.a.)
To fund your child's education, your Required Monthly SIP is:
₹ 0
₹ 0
Future Inflated Cost of Degree
₹ 0
Total Principal Invested
*Disclaimer: These calculations estimate future education costs based on inflation. Mutual Fund investments are subject to market risks.
FAQ
Frequently Asked Questions
Why is education inflation higher than normal inflation?
While normal retail inflation in India hovers around 5-6%, education inflation has historically grown at 10-12% annually. This is due to rising infrastructure costs, technological upgrades in institutions, and increased demand for specialized professional courses.
How does an Education Planning Calculator work?
The calculator takes the current cost of the desired degree and applies your estimated annual education inflation rate over the number of years until your child turns 18 (or college age). It then calculates the Future Value of that cost and uses an inverse SIP formula to determine the monthly savings required to reach that target corpus.
What is the best way to invest for a child's education?
If the goal is more than 7-10 years away, equity mutual funds (via SIPs) are highly recommended as they have the potential to beat 10% education inflation. As the goal approaches (3-4 years away), the corpus should gradually be shifted to safer debt funds to protect the capital.