Child Education Corpus Calculator
Plan the exact corpus and monthly SIP you need to fund your child's higher education — engineering, MBA, MBBS, or overseas study — after adjusting for India's 8-10% education inflation.
Plan Your Child's Education Fund
Why Plan Early for Your Child's Education?
Higher-education costs in India are rising at 8-10% per year, more than double the general CPI inflation. An engineering seat that costs ₹25 lakh today will cost over ₹68 lakh when your 5-year-old turns 18 in 13 years. Starting a systematic investment plan (SIP) early lets equity compounding do the heavy lifting.
The SEBI Investor Education portal recommends goal-based investing for long-term family goals like education — split across equity (growth) and debt (stability) instruments matched to your timeline.
How Is the Education SIP Calculated?
The calculator uses three time-value-of-money formulas:
Step 1 — Future cost of education:
Future Cost = Current Cost × (1 + Education Inflation)Years to Goal
Step 2 — Future value of current savings:
Savings FV = Current Savings × (1 + Return Rate)Years to Goal
Step 3 — Monthly SIP to bridge the gap:
SIP = (Gap × r) / (((1 + r)n − 1) × (1 + r))
Where r is monthly return (annual ÷ 12) and n is number of months. Example: A 5-year-old today with ₹25 lakh target grows to ₹67.98 lakh in 13 years at 8% inflation. With ₹1 lakh already invested (growing to ₹4.36 lakh at 12%), the gap is ₹63.62 lakh — bridged by an SIP of approximately ₹16,919/month.
Typical Education Costs in India (2026)
| Course | Today (₹) | In 15 Years @ 8% (₹) |
|---|---|---|
| K-12 (private, 12 yrs) | 15-25 lakh | 48-79 lakh |
| Engineering (private, 4 yrs) | 15-25 lakh | 48-79 lakh |
| Medical (MBBS, private) | 50-80 lakh | 1.6-2.5 crore |
| IIM MBA (2 yrs) | 25-30 lakh | 79 lakh - 95 lakh |
| US Masters (2 yrs, all-in) | 80 lakh - 1.2 crore | 2.5-3.8 crore |
| UK/Canada Bachelors | 60 lakh - 1 crore | 1.9-3.2 crore |
Includes tuition, lodging, and study materials. Overseas costs include INR depreciation. Verify current fees with the institution.
Best Investment Vehicles by Timeline
- 15+ years to goal: 80-90% equity SIP (large & mid-cap index funds, flexi-cap). Historically 11-13% CAGR.
- 10-15 years: 70% equity + 30% debt/hybrid balanced advantage funds.
- 5-10 years: 50% equity + 50% debt (short-duration funds, corporate bonds).
- Under 5 years: Debt funds, FDs, arbitrage funds — protect capital, minimise volatility.
- For girl children: Sukanya Samriddhi Yojana at 8.2% tax-free, up to ₹1.5L/yr. Combine with equity SIP.
- Start a rolling SIP top-up every 12 months as your income grows — try our Step-Up SIP Calculator.