Education Cost Planner
Enter what the education costs today and when you need the money — the planner inflates it and tells you the monthly SIP to get there.
Runs entirely in your browser — your numbers never leave this page.
How it works
Education inflation in India runs near 10% yearly — double general inflation. The planner does two steps:
Future cost = Today's cost × (1 + inflation)years
Monthly SIP = reverse-SIP on (Future cost − growth of existing savings)
- The 10% shock: Rs 20 lakh today → Rs 51.9 lakh in 10 years → Rs 1.35 crore in 20. Most parents under-save by half.
- Start early: 15 years at 12% needs ~Rs 9,700/month for a Rs 52L goal; 8 years needs ~Rs 31,000/month. Time beats amount.
- Earmark it: a dedicated fund (not "general savings") survives temptation. Review yearly as the goal inflates.
- De-risk near the goal: shift to debt in the last 2–3 years — a market crash the year fees are due is unrecoverable.
- Education loans exist, but graduating debt-free (or close) is a gift no rank can buy.
Frequently asked questions
How much will education cost in 10 years?
At 10% education inflation, multiply today's cost by ~2.6×. A Rs 20 lakh degree today costs ~Rs 52 lakh in 10 years, ~Rs 1.35 crore in 20.
Why is education inflation so high?
Premium institutes raise fees 8–12% yearly, far above CPI (~6%). It compounds brutally over a child's growing years.
How much SIP for my child's education?
For a Rs 52L goal in 10 years at 12%: ~Rs 21,500/month from zero. With 15 years: ~Rs 9,700/month. Existing savings cut it further.
Where should I invest for education goals?
Equity mutual funds (or aggressive hybrid) for horizons over 7 years; shift to debt in the final 2–3 years. SSY/PPF suit conservative planners.
Should I use an education-specific plan?
Child ULIPs and "education plans" usually underperform a plain SIP + term insurance combo on both returns and flexibility. Keep insurance and investment separate.
What if I start late?
Increase the SIP (even 20% more helps), extend the horizon if possible (a gap year), and consider a partial education loan rather than raiding retirement savings.
Should I raid my retirement fund for fees?
Almost never — you can borrow for education, not for retirement. Fund education from its own earmarked corpus.
How do I handle a market crash near the goal?
This is why you de-risk: move to debt 2–3 years before the fees are due. If already crashed, a short education loan bridges without selling low.
Does this include hostel and living costs?
Only if you include them in "cost today". Add 4 years of hostel/living (~Rs 2–3L/year today, inflated) for residential courses.
Is studying abroad different?
Same math, harsher numbers: foreign tuition inflates 5–8% in dollars, plus rupee depreciation (~3–4%/yr). Plan in the foreign currency, then convert.