Child Education Planning Calculator — Save for Your Child's Future — India 2026
Calculate the future cost of your child education and how much to save monthly through SIP or savings to build the required corpus by admission time.
Education costs in India are rising at 10-12% annually much faster than general inflation. An engineering degree costing Rs 10 lakh today will cost Rs 26 lakh in 10 years and Rs 67 lakh in 20 years. For foreign education a masters program costing Rs 30 lakh today could cost Rs 78 lakh in 10 years. Starting a dedicated education fund early through equity SIP is essential to beat education inflation.
How much to save monthly for child education abroad?
If your child is 5 years old and you need Rs 60 lakh in 13 years for foreign education you need to invest approximately Rs 15000 per month in equity SIP at 12% expected returns. Starting when the child is newborn reduces the required SIP to approximately Rs 9000 per month. Every year of delay significantly increases the required monthly investment.
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Education Cost Calculator
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| Education Inflation Rate | 10% - 12% per year |
| Current IIT Cost (4 years) | Rs 10-12 lakh |
| Current IIM Cost (2 years) | Rs 25-30 lakh |
| Current US Masters Cost | Rs 40-70 lakh (tuition + living) |
Plan your child education fund
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Use Calculator NowFrequently Asked Questions
How much to save monthly for child education abroad?
If your child is 5 years old and you need Rs 60 lakh in 13 years for foreign education you need to invest approximately Rs 15000 per month in equity SIP at 12% expected returns. Starting when the child is newborn reduces the required SIP to approximately Rs 9000 per month. Every year of delay significantly increases the required monthly investment.
Best investment for child education fund?
For goals 10+ years away: 70% in equity mutual funds (diversified or index) and 30% in PPF or debt funds. For goals 5-10 years: 50% equity and 50% debt. For goals under 5 years: 100% in debt funds FDs or short-term bonds. Sukanya Samriddhi Yojana at 8.2% is excellent for girl child education with tax-free returns.
Should I take education loan or save in advance?
Ideally do both: save as much as possible and use education loan to bridge the gap. Education loans offer Section 80E tax deduction on interest with no upper limit. However the interest cost on a Rs 30 lakh education loan at 10% for 7 years is approximately Rs 12 lakh. Starting a SIP 15 years early can eliminate the need for a loan entirely.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
How much should I invest monthly to become a crorepati?
At 12% expected returns, a monthly SIP of Rs 5,000 for 30 years grows to approximately Rs 1.76 crore. Increasing your SIP by 10% annually makes the corpus even larger. Start early, stay consistent.
Are investment returns taxable?
PPF returns are tax-free. Equity mutual fund LTCG above Rs 1.25 lakh/year is taxed at 12.5%. FD interest is taxed at your slab rate. NPS offers an additional Rs 50,000 deduction under 80CCD(1B).
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Last updated: March 2026