Child Education Planning Calculator

Education inflation runs hotter than general inflation — typically 7–10% per year worldwide. A college programme that costs $80,000 today will cost roughly $233,000 by the time your 3-year-old is 18. The good news: 15 years of compounding can fully cover it with a manageable monthly SIP.

Plan exactly how much you need to save monthly to fund your child’s higher education.

Currency:

Child’s Current Age Age at Higher Education Course Cost Today (full programme)

Education Inflation (% per year)

Inflation8.00%

Expected Return (% per year)

Return11.00%

Existing Education Savings

Education Plan

Future Cost of Education–

Required Monthly SIP–

Years Until Course Starts–

Existing Savings Will Be–

Total Saving Needed–

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Why Education Inflation Is So High

Education inflation outpaces general inflation almost everywhere — driven by rising faculty salaries, infrastructure, technology costs, and demand outpacing supply at top institutions. US college costs have risen ~6.5% per year over the last 30 years; India’s premium institutions ~10–12%; UK ~5–7%.

The Math

Future Cost = Today’s Cost × (1 + edu_inflation)years
Required Monthly SIP = (Future Cost − ExistingFV) × r / ((1+r)n − 1) × (1+r)

Worked Example

Example: Today’s programme cost $80,000, child is 3, course starts at 18 (15 years away), 8% education inflation, 11% expected return. Future cost ≈ $254,000. Required monthly SIP ≈ $525. Start at age 5 instead of 3 (only 13 years to go) and the required SIP jumps to ~$700. Time is the most powerful variable.

Strategy by Time Horizon

10+ years away: 80–100% equity (index funds, large/multi-cap). Time absorbs volatility.
5–10 years away: 60–70% equity, 30–40% debt. Begin shifting toward stability.
2–5 years away: 30–50% equity, 50–70% debt. Capital preservation becomes critical.
0–2 years away: Mostly fixed deposits / liquid funds. Don’t risk a 30% market drop right when you need the money.

Education Loans as a Backup

Even with diligent saving, top international programmes can outpace any reasonable monthly SIP. Education loans are a sensible backstop: low rates, deferred repayment, and tax benefits in many countries. A common strategy: save for 70–80% of the goal and finance the rest.

Frequently Asked Questions

Should I use a 529 plan / Sukanya Samriddhi / RESP?▾

Country-specific tax-advantaged education accounts are usually better than taxable accounts because of the tax shield on growth. Use them up to the contribution limit, then top up with regular SIPs.

How do I plan for two or three children?▾

Run this calculator separately for each child and sum the SIPs. Or treat the family’s total education goal as one bucket and prioritise the oldest child’s goal first.

What if my child gets a scholarship?▾

Bonus — your savings either reduce loan need or seed their early adult life. Plan for the full cost; treat scholarships as upside.

What if education costs are paid in foreign currency?▾

Add a currency-risk buffer of 15–25%. Or, save partly in the destination currency once the goal is within 3–5 years.

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