Why is the future cost so much higher?

Education inflation compounds through the saving years and again during the course. At nine percent, a cost roughly doubles every eight years.

Does starting later cost much more?

Considerably. Fewer years means less compounding and a larger monthly requirement, and the effect is more than proportional.

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Child Education Corpus Calculator

Monthly saving needed for a child education corpus. Education inflation running well above general inflation is why the required amount is always larger than parents expect.

Also called: education corpus calculator, child future cost.

Monthly SIP required

₹28,136

₹28,136 a month for 14 years to fund a course costing ₹1,22,25,719 by then. That is 3.82x the current cost of ₹32,00,000, because education inflates at 9% while you save.

Cost when the course starts

₹1,22,25,719

The same course today

₹32,00,000

Cost multiple

3.82

Years to save

What you already have will become

₹10,77,610

Gap to fund

₹1,11,48,109

First year fee then

₹26,73,382

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The cost inflates from now until the course starts, and again through each year of the course. Existing savings grow at the expected return and reduce the gap. The required SIP is what fills the remainder. Education costs in India have historically inflated around eight to ten percent, well above general inflation, which is the whole reason the required figure is so much larger than the current fee suggests. Starting late compresses the compounding period and raises the monthly requirement sharply.

the cost inflates through the saving years and the course years; existing savings grow and reduce the gap

g: Education inflation
S: Existing savings

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

fourteen years to fund a four year course

Child age now: 4
Age when college starts: 18
Current annual cost of the course: ₹8,00,000
Course length: 4
Education inflation: 9%
Expected return on savings: 11%
Already saved: ₹2,50,000

Monthly SIP required₹28,136

8 lakh x 1.09^14

Open this example

no inflation leaves the cost unchanged

Child age now: 4
Age when college starts: 18
Current annual cost of the course: ₹8,00,000
Course length: 4
Education inflation: 0%
Expected return on savings: 11%
Already saved: ₹2,50,000

Monthly SIP required₹5,357

boundary

Open this example

Method and limits

What it assumes

Constant education inflation and a constant return, neither of which will hold over fifteen years.

What it deliberately does not model

Scholarships, education loans and part funding all change the picture.
A course chosen abroad adds currency risk, which is not modelled.
This is a mechanical projection, not advice on how to fund education.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why is the future cost so much higher?: Education inflation compounds through the saving years and again during the course. At nine percent, a cost roughly doubles every eight years.
Does starting later cost much more?: Considerably. Fewer years means less compounding and a larger monthly requirement, and the effect is more than proportional.