Child Education Planner
Inflates annual fees for each college year, sums the goal, and backs into a monthly SIP at your expected return.
Turn vague education inflation worries into a rupee goal corpus: we inflate annual fees for each college year, sum them, and back-solve a monthly mutual fund SIP at your assumed CAGR— adjust course length and ages for undergraduate or postgraduate paths.
Goal inputs
Years to first college year: 13
Goal summary
Target is the sum of inflated annual fees across the course.
Goal vs total SIP cash you put in (growth makes up the gap)
- Inflated education corpus target₹36,76,479
- Sum of monthly SIPs (no return—cash deposited only)₹16,68,175
Goal funding math
Education goals combine inflated future costs (liability side) with compounded monthly savings (asset side).
Future fee for study year k
Fee_year_k = Fee_today × (1 + g)^(years_to_college + k) g = education inflation (annual)
- k
- 0-based index of each academic year in the course.
Summing Fee_year_k for all course years gives the total corpus needed around college entry, ignoring partial timing within the year.
Monthly SIP to reach corpus
Corpus = FV of monthly PMT at monthly rate r_m for n months Solve PMT (same convention as mutual fund SIP calculators)
- n
- Months from now until the first college payment—approximated from age gap.
We solve backward from the target lump sum to a level monthly investment, assuming contributions continue through the month before the goal.
Illustrative cost build-up
Education inflation can dominate the goal—this stacked bar is symbolic; tune inflation in the form to stress-test.
- Tuition & academic — 65.0%
- Living & travel — 25.0%
- Buffer / forex — 10.0%
Not computed from your inputs—helps visualize tuition vs ancillary costs you might bundle into annual fee.
Key terms
- Education inflation
- Often higher than CPI—fees at private institutions can rise faster than general inflation.
- Target corpus
- Lump sum you aim to have available when payments begin.
- SIP
- Systematic Investment Plan—regular mutual fund investments, commonly monthly in India.
- Asset allocation
- Mix of equity, debt, and cash; should generally de-risk as the goal date approaches.
Benefits
- Quantify a vague worry (“foreign MBA is expensive”) into rupee targets.
- See how changing inflation or course length moves required SIP.
- Discuss numbers transparently with family before committing to instruments.
FAQ
How is the target corpus calculated?▼
For each year of the course, we inflate today’s annual fee to the year the child reaches that study year, then sum those amounts. That models rising fees across a multi-year degree.
What return should I assume?▼
Use a conservative long-term nominal return for the asset mix you actually hold (e.g. mixed debt/equity). Higher assumed return reduces required SIP but increases risk if markets disappoint.
Does this include hostel or foreign study?▼
You can fold hostel or living costs into “annual fee today” as a lumped estimate. Foreign study would use higher base fees and possibly different inflation—adjust inputs accordingly.
What if I miss a few SIP months?▼
Real life is lumpy. The calculator assumes steady monthly investment; missed months mean you must catch up with a top-up or extend the horizon.