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 ₹9.4 lakh at 12%), you need ₹58.6 lakh more, requiring a SIP of about ₹15,100 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.