What is the Child Education?
Education is the fastest-inflating major expense in India, running at roughly 8–10% a year against general inflation of 5–6%. A degree costing ₹25 lakh today can exceed ₹63 lakh in thirteen years.
Because the deadline is fixed by your child's age, this is one goal where starting early matters more than any other single factor.
Formula & worked example
SIP = (Future cost − existing savings grown) × i / (((1+i)N − 1) × (1+i))
Worked example: a ₹25,00,000 course, child aged 5, starting at 18 → 13 years at 8% inflation makes it ₹68 lakh. With ₹2 lakh already saved (growing to ₹9.44 lakh at 12%), you need ₹58.6 lakh more, requiring a SIP of about ₹15,574 a month.
How to use this child education calculator
- Enter the current cost of the course you have in mind, including living expenses.
- Set your child's age now and when the course begins.
- Use 8–10% for education inflation — it is genuinely higher than CPI.
- Add anything already earmarked for education so it is not double-counted.
Smart tips
- Start the year the child is born. A SIP begun at age 0 needs roughly half the monthly amount of one begun at age 8.
- Shift from equity to debt in the final 2–3 years. You cannot risk a 30% market fall the year fees are due.
- Sukanya Samriddhi is excellent for a daughter's education — sovereign-backed with a rate above PPF.
- Keep education savings in a separate folio so it is never raided for other goals.
- An education loan is a legitimate backstop, and Section 80E makes the interest fully deductible.
Frequently asked questions
What is education inflation in India?
Roughly 8–10% a year for private schools and colleges — meaningfully above general inflation of 5–6%, which is why nominal fee projections look so large.
How much should I save monthly for my child's education?
It depends on target cost and years available. A ₹25 lakh course 13 years away typically needs ₹15,000–16,000 a month at 12% returns.
Is Sukanya Samriddhi better than a mutual fund SIP?
SSY offers a guaranteed, tax-free rate above PPF and is ideal for the safe portion. Equity SIPs have higher expected returns over 15+ years. Many parents use both.
When should I move education savings out of equity?
Begin shifting 2–3 years before the fees are due, moving to debt funds or FDs so a market fall cannot derail the goal.
Want the theory behind the numbers? Read our child planning guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 30 Sep 2026. How we check these numbers.