Child Education Planner 2026
Estimate how much your child's higher education will cost in the future and how much you need to save today.
Last updated: May 2026
Approx cost of Engineering/MBA/Medical today.
Adjusted for 10% inflation after 15 years.
Start investing this much every month to reach the goal.
Education inflation in India is significantly higher (10-12%) than general inflation (5-6%). Start early to benefit from compounding.
Reviewed by CA Rohit Sharma
•Chartered Accountant & Tax ExpertExpert in Indian taxation, corporate finance, and mortgage compliance. Rohit ensures that all tax-related calculations and loan eligibility criteria align with current regulatory standards. All mathematical models and regulatory data points have been verified for the current 2026 fiscal period.
Planning for Higher Education
Higher education in India and abroad is one of the fastest inflating costs for parents. While general inflation might hover around 5-6%, Education Inflation in India is typically between 10% and 12% annually.
This means a 4-year Engineering course that costs ₹15 Lakhs today could easily cost ₹60 Lakhs in 15 years. Starting early with a dedicated SIP (Systematic Investment Plan) is crucial to bridge this gap without taking on massive education loans.
How to use this calculator
- 1Today's Cost — Research the current fees for the target course (e.g., ₹20 Lakhs for an MBA).
- 2Years to College — Select how many years are left until your child reaches higher education (age 17-18).
- 3Inflation Rate — We recommend using 10% as a conservative estimate for education inflation in India.
- 4Invested SIP — See the final future cost and the monthly SIP required to achieve that goal.
Formula & example
Future Cost = Current Cost × (1 + Inflation)^Years
Example: 3-Year-Old Child, MBA Goal (₹25L today).
- Time to College: 15 Years
- Future Cost: ~₹1.04 Crores (at 10% inflation)
- Required SIP: ~₹21,000/month (at 12% return)
Benefits
Avoid Debt
Save enough to avoid high-interest education loans for your children.
Targeted Goals
Have a clear number in mind so you don't over-invest or under-invest.
Power of Compounding
Starting when the child is 1 vs 10 years old can reduce your SIP requirement by 70%.
Use cases
New Parents
Starting a small SIP from the child's first birthday.
Middle-School Planning
Refining goals as the child's interests (e.g. Medicine vs Arts) become clear.
Foreign Ed Planning
Calculating costs for US/UK degrees factoring in currency depreciation.
Frequently asked questions
Why is education inflation higher than normal inflation?+
Increased demand for top-tier institutions, higher infrastructure costs, and specialized curriculum development drive education costs up faster than basic commodities.
Which investments are best for this goal?+
For horizons over 10 years, Equity Mutual Funds or Index Funds are often preferred. For shorter horizons, a mix of debt and equity is safer.
What if I miss the SIP for a few months?+
Missing installments reduces the final corpus. You can use our 'Step-up' logic in the main SIP calculator to catch up later.