How Child Education Planning Works
This calculator estimates the future cost of your child's education by applying education inflation (typically 8-10% in India), then calculates the monthly SIP needed to accumulate that amount by the target year. It accounts for your existing savings and expected investment returns.
Formula
Future Cost = Current Cost × (1 + Inflation)^Years
Required SIP = (Future Cost - Future Value of Savings) × r / [(1+r)^n - 1]
r = monthly return, n = months to goalTypical Education Costs in 2026 India
| Course | India (Private) | Foreign (US/UK) |
|---|---|---|
| Engineering (4 years) | ₹8-15 lakh | ₹40-80 lakh |
| Medical (5.5 years) | ₹50-1 crore | ₹1-2 crore |
| MBA (2 years) | ₹15-25 lakh | ₹50-1 crore |
| Liberal Arts (3 years) | ₹6-12 lakh | ₹30-60 lakh |
Note: Costs include tuition only. Add ₹5-15 lakh/year for living expenses depending on location.
Education Planning Tips
- •Start Early: Starting when your child is born vs age 10 can reduce monthly SIP by 60%+
- •Use Equity for Long-Term: If goal is 10+ years away, use equity mutual funds for higher returns
- •Shift to Debt Near Goal: Move to debt funds 2-3 years before the goal to protect capital
- •Consider Education Loans: Don't over-save; education loans have tax benefits and low rates
Common questions
How much does engineering education cost in India?
In 2026, a 4-year engineering degree costs ₹8-15 lakh in private colleges, ₹2-4 lakh in government colleges, and ₹40-80 lakh for foreign universities. Costs increase 8-10% annually.
What inflation rate should I use for education?
Education inflation in India is typically 8-10% annually, higher than general inflation (6-7%). Use 10% for conservative planning, especially for foreign education.
Should I include living expenses?
Yes. For foreign education, living expenses can equal or exceed tuition. Budget ₹10-15 lakh/year for living costs in the US/UK, ₹5-8 lakh/year in India for hostel and expenses.
What return should I assume for education SIP?
For long-term goals (10+ years), 12% is common for equity mutual funds. For shorter horizons (5-7 years), use 8-10% with a balanced or debt-heavy portfolio.
Can I use this for multiple children?
Yes. Calculate separately for each child based on their age and target education, then add the monthly SIPs together for your total savings requirement.
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Request a calculator →Disclaimer: Education cost estimates are indicative and vary by institution, location, and course. Investment returns are not guaranteed. Consult a financial adviser for personalized education planning.
Last updated: May 2026