Child Education Calculator
Use this free child education calculator to find the monthly SIP needed for your child’s higher education. Enter the cost of the course today, your child’s current age, the age when the money is needed, and your assumptions for education cost inflation and returns. The calculator allows for rising fees and shows an illustrative monthly amount.
How this child education calculator works
The calculator raises today’s cost by the education inflation rate until the year your child starts the course. It subtracts what your existing savings could grow to, and works out the monthly SIP that would build the rest. For example, a course costing ₹25 lakh today, with the child now 5 and the money needed at 18, would cost about ₹68 lakh at 8% yearly education inflation. At an assumed 12% return, building that would need a monthly SIP of about ₹18,086. The result is an illustration, not a forecast.
Why education costs may rise faster
The cost of higher education has often risen faster than everyday prices, and for courses abroad the value of the rupee against other currencies matters too. That is why this calculator starts with a higher inflation rate than our general goal calculator. You can change it, and it is wise to test a higher figure.
What this calculator does not include
It treats the whole cost as needed in a single year, while many courses are paid over several years. If the fees are spread out, you can run the calculator for each year of the course. It does not include scholarships, education loans, taxes or currency movement, and it assumes your SIP stays the same every month. To see the effect of raising your SIP each year, try our Step up SIP calculator.
Frequently asked questions
When should I start saving for my child’s education?
As early as you can. A longer period means a smaller monthly amount for the same goal. Use our Cost of Delay calculator to see what waiting can cost.
What return should I assume if the goal is close?
A goal only a few years away has little time to recover from market falls, so it usually calls for a more cautious mix and a lower expected return. Try a lower rate as the date comes closer. We can help you choose a suitable approach.
Is the return shown guaranteed?
No. Mutual fund returns are market-linked and can be higher or lower than the rate you enter. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Learn more on the AMFI investor awareness site.
How is this different from the Goal SIP calculator?
It uses the same method, but makes it easier for this goal, with your child’s age, a higher education inflation rate and a typical starting cost. For any other goal, use our Goal SIP calculator.