What is Child Education Corpus Calculator?
Calculate corpus needed for your child's higher education and monthly SIP to build it, adjusted for education inflation Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Education inflation in India averages 8-10% p.a. — higher than general inflation. A ₹15 lakh engineering course today costs ₹32+ lakh after 10 years at 8% education inflation. Start early to leverage compounding.
How to Use This Calculator
- Enter the current estimated cost of education (today's fees)
- Enter your child's current age and target course start age
- Enter education inflation rate (8-10% recommended)
- Enter expected investment return rate (12% for equity SIP)
- Click Calculate to see future cost and monthly SIP needed to build that corpus
Worked Example
Current Cost: ₹15L | Child Age: 5 | Education at 18 | Inflation: 8% | Return: 12% → Future Cost: ₹41L | Monthly SIP: ₹9,500 | Start today!
Why Use This Tool?
- Account for high education inflation specific to college fees
- Start SIP early for maximum compounding benefit
- Plan for multiple education milestones (graduation, post-grad)
- Choose SSY for daughters (8.2% tax-free) alongside equity SIP
Frequently Asked Questions
How much does higher education cost in India today?
Engineering: ₹4-15 lakhs (4 yrs) | MBA (IIM): ₹20-25 lakhs | MBBS: ₹30-70 lakhs (govt/private) | B.Tech IIT: ₹8-10 lakhs | Studying abroad: ₹50 lakhs to ₹2 crore. At 8-10% education inflation, current costs can double every 7-9 years.
Which investment is best for child education planning?
Equity mutual fund SIP for 10+ year horizon (12-15% return). Sukanya Samriddhi for girl child (8.2% tax-free, EEE status). Balanced approach: start with equity SIP, shift to debt funds 2-3 years before college to protect corpus from market volatility.
Can I take an education loan instead of saving?
Education loans are available but come with 8-12% interest. A ₹20 lakh loan at 10% for 10 years = ₹26,000 EMI and ₹31 lakh total repayment. Planning and investing early is always better than taking an expensive loan. Use loans only as a backup for unexpected cost increases.
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