Why this calculator is important
This calculator matters because education decisions usually affect cash flow, insurance cover, tax planning or long-term wealth. A structured result helps you see the gap, the yearly progress and the action required before you commit money.
What you gain from the result
You get a usable estimate, a year-wise progress chart, input summary, downloadable PDF and a clear next step for review. The output is built for practical planning, not only quick entertainment.
How to read the year-wise chart
The bar chart separates your contribution, growth, gap or protection value by year. Use it to see whether the plan depends too much on future returns, too little on current savings, or an unrealistic time frame.
Frequently Asked Questions
How much should I save for my child's higher education in India?
An engineering degree from a private college costs ₹8–20 lakh today and an MBBS ₹30–80 lakh. With 8–10% education inflation, these costs double every 7–9 years. A child born today will face costs 2–3 times higher by the time they reach college. Use this calculator to find the monthly SIP you need to start today for your target corpus.
What is the impact of education inflation in India?
Education costs in India have been inflating at 8–12% annually — faster than general consumer inflation. A course costing ₹10 lakh today will cost approximately ₹21 lakh in 8 years and ₹31 lakh in 12 years at 10% education inflation. Starting an education fund early is critical because every year of delay significantly increases the monthly saving required.
Which is the best investment plan for a child education fund in India?
Equity mutual funds via SIP are the best option for a 10+ year horizon because they historically outperform inflation. For a 5–8 year horizon, a mix of equity and debt mutual funds balances growth and safety. Sukanya Samriddhi Yojana (for girl children) at 8.2% is a safe debt option. Avoid child ULIPs — their charges often erode returns significantly.
Should I use PPF or SIP for my child's education savings?
PPF offers 7.1% tax-free but has a 15-year lock-in — suitable only if your child is below 3 years old. Equity SIP historically gives 10–14% over 10+ years and offers more flexibility. The best approach is to combine both: PPF for safe fixed-income component and equity SIP for growth. This hybrid strategy gives both safety and inflation-beating returns.
Can I use Sukanya Samriddhi Yojana for my daughter's education?
Yes. Sukanya Samriddhi Yojana (SSY) currently gives 8.2% interest compounded annually and is fully tax-free under Section 80C. You can withdraw up to 50% of the balance when your daughter turns 18 for higher education expenses. The account matures when she turns 21. For a 10+ year horizon, SSY combined with equity SIP is an excellent strategy for girl-child education planning.
How much SIP per month is needed for a ₹50 lakh education corpus in 15 years?
Assuming 12% annual returns, you need approximately ₹8,500 per month SIP to accumulate ₹50 lakh in 15 years. At 10% assumed return, the required SIP rises to around ₹11,000 per month. Starting 5 years later (10-year horizon) at 12% would require ₹22,000 per month for the same corpus — showing clearly why starting early makes a massive difference.
Want help reviewing your Education Savings result?
Our team at Hatlet Ventures can review this result against your real income, goals, insurance gaps and tax situation — for free.
Sri Balaji is the founder of Hatlet Ventures, a NISM-certified, AMFI-registered mutual fund distributor and IRDAI-licensed insurance advisor based in Tiruppur, Tamil Nadu. He helps families with SIPs, mutual funds, insurance planning, tax-saving investments and long-term financial planning.