Child education
Plan for higher education costs, adjusted for inflation.
Your inputs
Total fees in today's money, for example ₹25 lakh for an engineering degree.
Advanced settings
Shift gradually to debt in the last 3 years before the goal.
How the yearly return is applied
Most apps divide the yearly return by 12, which shows about 3.5% more over 10 years. We use the effective rate by default, so 12% means 12% a year.
Payment timing
Results
Generated on 11 Oct 2026
Your inputs
| Child's age | 3 yrs |
|---|---|
| Needed at age | 18 yrs |
| Course cost today | ₹25,00,000 |
| Education inflation (per year) | 10% |
| Already saved for it | ₹0 |
| Expected return (per year) | 12% |
| Glide path to debt | ✓ |
| Debt return for the glide path | 7% |
| Step-up for the rising SIP option | 10% |
| How the yearly return is applied | Effective (12% = 12% a year) |
| Payment timing | Start of month |
Monthly SIP needed
₹23,960
every month for 15 years
- Future cost
- ₹1,04,43,120
- at age 18
- Or a starting SIP rising 10% a year
- ₹13,737
- Or a lumpsum today
- ₹20,89,427
- Existing savings will grow to
- ₹0
Year-by-year breakdown
| Child's age | Invested in year | Total invested | Value at year end |
|---|---|---|---|
| 4 | ₹2,87,519 | ₹2,87,519 | ₹3,05,884 |
| 5 | ₹2,87,519 | ₹5,75,038 | ₹6,48,475 |
| 6 | ₹2,87,519 | ₹8,62,557 | ₹10,32,176 |
| 7 | ₹2,87,519 | ₹11,50,076 | ₹14,61,921 |
| 8 | ₹2,87,519 | ₹14,37,595 | ₹19,43,236 |
| 9 | ₹2,87,519 | ₹17,25,114 | ₹24,82,309 |
| 10 | ₹2,87,519 | ₹20,12,633 | ₹30,86,070 |
| 11 | ₹2,87,519 | ₹23,00,152 | ₹37,62,283 |
| 12 | ₹2,87,519 | ₹25,87,671 | ₹45,19,641 |
| 13 | ₹2,87,519 | ₹28,75,191 | ₹53,67,882 |
| 14 | ₹2,87,519 | ₹31,62,710 | ₹63,17,912 |
| 15 | ₹2,87,519 | ₹34,50,229 | ₹73,81,946 |
| 16 | ₹2,87,519 | ₹37,37,748 | ₹84,48,118 |
| 17 | ₹2,87,519 | ₹40,25,267 | ₹94,81,133 |
| 18 | ₹2,87,519 | ₹43,12,786 | ₹1,04,43,120 |
Assumptions and method
Formula
- Future cost = today's cost · (1 + education inflation)^years
- Required SIP solved by bisection on the simulator
- Glide path: equity share = (years left − 1) / 3 over the last 3 years
Conventions used
- Monthly rate: i = (1 + r)^(1/12) − 1 (Effective (12% = 12% a year))
- Money moves at the start of each month, so an instalment earns that month's return.
Modelling notes
- Education inflation 10.0% a year.
Not included
- Market ups and downs: the same return is assumed every month.
- Expense ratio, exit load and stamp duty, unless your expected return already allows for them.
- Income tax on gains (turn on the post-tax option to estimate it).
This is an illustration based on the return you entered. Actual returns vary and may be lower or negative.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
How it works
Higher education costs in India have been rising faster than general inflation, so this calculator uses 10% education inflation by default. Enter the course cost in today’s money and your child’s age; we inflate it to the year it is needed and work out the SIP or lumpsum required.
A three-year glide path into debt is on by default, so the money is safer when the admission fees are due.
Frequently asked questions
Why 10% inflation?
Fees for professional courses and private universities have historically risen faster than consumer prices. You can change the rate.
Can I include savings I already have?
Yes. Enter them as existing savings; they grow at the expected return and reduce the SIP needed.
What return should I assume?
Use a figure you would be comfortable with if markets disappoint. For diversified equity funds over 10+ years, 10–12% a year is a common planning assumption; debt funds 6–7%. Returns are not fixed, can be negative over short periods, and past performance may or may not be sustained in future.