Child Education Planner
Child Education Planner
What your child’s education could cost by the time they start, what your savings for it will have grown to, and the monthly SIP that would close the gap.
Monthly SIP for education
A course costing $20,00,000 today, 12 years away, costs rising 5% a year, an expected return of 10%, and $2,00,000 already saved
Future cost, savings and the SIP for the gap
- e
- education cost inflation, as a decimal
- i
- the monthly rate: expected annual return ÷ 12 ÷ 100
- n
- months until the course starts
- P
- the monthly SIP, each instalment invested at the start of its month
Worked example
A course costing $20,00,000 today, 12 years away, costs rising 5% a year, an expected return of 10%, and $2,00,000 already saved
Future cost = 20,00,000 × 1.0512 = 20,00,000 × 1.7959 = $35,91,713
i = 10 ÷ 1200; n = 144; (1 + i)144 = 3.3036
Savings by then = 2,00,000 × 3.3036 = $6,60,730; gap = $29,30,983
SIP = 29,30,983 × i ÷ [(3.3036 − 1) × (1 + i)] = $10,515 a month
Without the 2,00,000 already saved it would be $12,885
Monthly SIP for a course costing 20,00,000 today, at a 10% return, nothing saved yet
| Years to go | Inflation 5% | Inflation 8% | Inflation 10% |
|---|---|---|---|
| 5 years | $32,691 | $37,635 | $41,252 |
| 10 years | $15,772 | $20,904 | $25,115 |
| 15 years | $9,949 | $15,181 | $19,990 |
| 18 years | $7,948 | $13,198 | $18,363 |
Planning for a cost that keeps rising
Education is a goal with a fixed date and a price that rises every year until then. The planner works in three steps. It raises today’s cost by the education inflation rate to what the course will cost when your child starts. It grows any money you have already set aside at the expected return. Then it finds the level monthly SIP that fills the gap, using the same convention as the SIP goal calculator — the annual return divided by twelve as the monthly rate, and each instalment invested at the start of its month.
In the example, a course costing $20,00,000 today costs about $35,91,713 in twelve years at 5% a year. The $2,00,000 already saved grows to about $6,60,730, leaving $29,30,983 for the SIP, which at 10% needs about $10,515 a month. The chart shows the fund chasing the rising cost and catching it in the final year.
Which inflation rate? It is often said that education costs rise much faster than prices in general. India’s official consumer price index does not show that for education as a whole: its education index stood at 196.0 in December 2025 against 100 in 2012, about 5% a year, almost exactly the pace of the general index (198.0). That is why the default for rupees is 5%. An index averages school fees, books and tuition across the country, though, and the course your child takes — a private professional degree, or study abroad — may rise faster or slower. Look at how its fees have moved over the past decade and try a higher figure too; the table shows how much it matters.
The return is an assumption and returns on market-linked funds vary, so try a lower figure. Many parents move the money to lower-risk options in the last few years, so a late fall in markets does not arrive in the year the fees are due. Gains are usually taxed when you redeem, so the amount you can spend may be a little less than the fund shown. If there is a gap left, the education loan calculator shows what borrowing the rest would cost. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How much should I save each month for my child’s education?
Raise today’s cost by education inflation, take off what your current savings will grow to, and find the SIP that fills the gap. $20,00,000 in 12 years at 5% inflation and a 10% return, with $2,00,000 saved, needs about $10,515 a month.
What education inflation rate should I use?
India’s official CPI education index has risen about 5% a year since 2012, in line with prices generally. Particular courses and colleges can rise faster, so check their fee history and try 8–10% as well.
Is the SIP invested at the start or the end of the month?
At the start, the same convention as the site’s SIP and SIP goal calculators. Investing at the end of each month would need a slightly larger SIP.
What if my savings already cover the cost?
The planner shows a SIP of zero and says so. The projection still depends on the return you entered being earned.
Related calculators
References
- Ministry of Statistics and Programme Implementation (MoSPI), National Statistics Office. Press release on the Consumer Price Index for December 2025, Annexure II: CPI (Combined), base 2012 = 100 — Education 196.0, General index 198.0 (provisional).
- Securities and Exchange Board of India (SEBI) / Association of Mutual Funds in India (AMFI). Mandatory risk statement for mutual fund communications: “Mutual fund investments are subject to market risks, read all scheme related documents carefully.”
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill. Present and future values, annuities and growing annuities; the level-payment loan formula.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.