Education Planning Calculator – Child Future Planner

🎓 Education Planning Calculator

Higher education costs rise much faster than normal inflation. Calculate exactly how much you need to save to guarantee a debt-free degree for your child.

Child & Course Details
Course/Degree Goal
Current Cost of Course ₹20,00,000
₹1 L₹2 Cr
₹
Enter target between ₹1L and ₹2Cr.
Years until College 15 Yrs
1 Yr25 Yrs
Y
Enter 1 to 25 years.
💡 Education Inflation is high. While normal inflation is ~6%, education costs historically rise at 10% to 12% per year.
Education Inflation Rate 10%
5%15%
%
Enter 5% to 15%.
Expected Investment Return 12%
6%20%
%
Enter return between 6% and 20%.
Estimated Cost in 15 Years
₹83,54,496
For College Degree
Required Monthly SIP
₹16,558
Total Investment: ₹29,80,440
Wealth Generated: ₹53,74,056
64%
Returns
Invested
Returns
Path to Education Corpus

Why prioritize Education Planning?

Higher education costs are rising at a rate of 10-12% annually globally. This is significantly higher than standard inflation (4-6%). If a premier engineering degree costs ₹20 Lakhs today, it could demand nearly ₹85 Lakhs in 15 years.

Formula Breakdown

1. Future Cost of Degree: Current Cost × (1 + Education Inflation)ⁿ

2. SIP Equation: It computes the Present Value of an Annuity required to hit the Future Cost target, assuming a monthly compounded return of the specified Investment rate.

Smart Planning Tips:

  • Start Early: Because of the power of compounding, a 5-year delay can double your required monthly SIP.
  • Asset Allocation: When the goal is 10+ years away, aggressive equity mutual funds (12-14% returns) are standard. When the goal is 2-3 years away, the corpus must be shifted to safe debt funds or FDs (6-8%).
  • Step-Up SIP: You can start with a lower amount and increase it each year as your income grows to hit the same target.
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