Child Education Cost Calculator India — FY 2025-26
Calculate the future cost of your child's education with 10% annual inflation — IIT, IIM, private medical, or study abroad. See exactly how much to save monthly via SIP to fund any education goal. Model up to 3 children and see the delay penalty for waiting.
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How to Use This Calculator
Future Education Cost tab
Select your child's likely education type — the current cost auto-fills based on 2025-26 data. Enter your child's current age and the age when education starts. The calculator shows the future cost inflated at 10% p.a. (India's historical education inflation), the monthly SIP you need to start today, and the lumpsum you could invest now to fund the entire goal.
Multiple Children tab
Enter details for up to 3 children — each with their own education type and timeline. The calculator computes individual future costs and SIPs, then adds them to a combined monthly SIP. The delay penalty shows exactly how much more you'd pay per month if you start 3 years late — a powerful motivation to begin today.
Study Abroad Planning tab
Enter annual cost in USD (the global default for international education), years of study, child's current age, and expected start age. Set education inflation (foreign university cost escalation) and rupee depreciation — the calculator compounds both to show the true INR cost. This is the only India calculator that properly models the dual-inflation effect on study abroad planning.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a financial advisor, co-parent, or save it for your annual financial review.
The Formula
FC = PC × (1 + i)n
Where:
PC = Present cost of education today
i = Education inflation rate (decimal, e.g., 0.10 for 10%)
n = Years to goal (child's start age − current age)
FC = Future cost at time of education
Monthly SIP Needed (Future Value Annuity):
SIP = FC × r / [(1 + r)N − 1] / (1 + r)
Where:
r = Monthly investment return (annual return / 12 / 100)
N = Total months (years to goal × 12)
Lumpsum Needed Today (Present Value):
PV = FC / (1 + R)n
Where R = annual investment return (decimal)
Study Abroad — Effective Inflation:
Effective rate = (1 + edu_inflation) × (1 + rupee_depreciation) − 1
Example: (1.10) × (1.03) − 1 = 13.3% effective annual cost inflation in INR
Total Study Abroad Cost:
Sum of annual costs, each further inflated during the study period:
Total = ∑[Annual cost × (1 + effective_rate)(n + year)] for year 0 to (study_years − 1)
Education inflation in India has averaged 10-12% p.a. over the last decade — roughly double general CPI inflation. This means a course costing &rupee;10 lakh today will cost approximately &rupee;26 lakh in 10 years at 10% inflation. The monthly SIP formula assumes investments at the beginning of each month (annuity due), which gives the most accurate result.
Example
Anita — Pune software professional, saving for two children
Anita, 32, has two children: Riya (age 5, aiming for IIT engineering) and Rohan (age 3, aiming for IIM MBA). She wants to know exactly how much to save monthly for both goals.
Step 1: Riya's Engineering goal (IIT/NIT)
Step 2: Riya's future cost
Step 3: Rohan's MBA goal (IIM)
Step 4: Combined picture
By starting today, Anita needs &rupee;26,160/month across two separate equity ELSS SIPs. Delay of 3 years costs her an extra &rupee;10,640/month — the compounding penalty for procrastination. She could use Sukanya Samriddhi Yojana (8.2%, tax-free) for Riya's shorter-horizon goal and ELSS for Rohan's 20-year goal.
FAQ
15+ years away: Equity mutual funds (NIFTY 50 index fund or ELSS) via SIP. Target 12-14% CAGR. Tax: LTCG at 12.5% above &rupee;1.25 lakh/year.
10-15 years away: Equity SIP + Sukanya Samriddhi Yojana (8.2% p.a., Section 80C, tax-free maturity) for girl child. Max &rupee;1.5 lakh/year in SSY.
7-10 years away: Balanced advantage / hybrid funds + PPF (7.1% p.a., Section 80C, tax-free, 15-year lock-in). PPF is ideal for risk-averse parents.
Under 5 years away: Short-duration debt funds, liquid funds, or bank FDs (TDS applies). Avoid equity at this stage due to market risk.
Study abroad goal: International equity funds (US ETFs) or FCNR deposits to hedge currency risk. LRS allows $250,000/year remittance.
Sukanya Samriddhi Yojana (SSY): 8.2% p.a. (Q1 FY26), Section 80C deduction up to &rupee;1.5 lakh/year, completely tax-free on maturity, government-guaranteed. Account matures at 21 years from opening. Partial withdrawal (50%) allowed at age 18 for education. Maximum deposit: &rupee;1.5 lakh/year. No equity risk.
Equity SIP: 12-15% historical CAGR, LTCG tax at 12.5% on gains above &rupee;1.25 lakh, no lock-in, flexible amounts, no upper limit. Higher expected return but market-linked risk.
Optimal strategy: Max out SSY first (&rupee;1.5 lakh/year) for the guaranteed, tax-free base. Then add equity SIP on top for the balance needed. SSY is especially powerful because the 8.2% compounded over 21 years is nearly impossible to beat on a risk-adjusted, post-tax basis.
Key planning tools: International equity mutual funds (Motilal Oswal Nasdaq 100, Mirae Asset S&P 500) which rise as USD strengthens; FCNR (B) deposits in USD at 4-5%; education loans from SBI Global Ed-Vantage or HDFC Credila (up to &rupee;1.5 Cr for top universities); LRS (Liberalised Remittance Scheme) allowing $250,000/year transfer for education. Section 80E allows deduction of education loan interest (no upper limit) for up to 8 years.