PaisaGanit

Child Education Planner

Estimate the future cost of your child's education and the monthly SIP or lump sum needed to fund it.

₹10,00,000 · 10 lakh
Illustrative rate, not a forecast.
Illustrative rate. Actual returns vary and are not guaranteed.
₹0

Monthly SIP needed₹4,750

Estimated cost when needed₹23,96,558
23.97 lakh
Your savings by then₹0
Gap to fill₹23,96,558
Or a lump sum today of₹3,99,706

The lump sum compounds monthly at the entered return ÷ 12, the same as the SIP.

How it works

Future cost = Cost today × (1 + inflation)years

Money already saved grows monthly at i = expected return ÷ 12 over n = years × 12 months:

Savings by then = Saved × (1 + i)n  ·  Gap = Future cost − Savings by then

The gap is filled by a SIP invested at the start of each month (the same formula as our SIP calculator):

Monthly SIP = Gap ÷ [((1 + i)n − 1) ÷ i × (1 + i)]  ·  Lump sum today = Gap ÷ (1 + i)n

The lump-sum option also compounds monthly at the entered return ÷ 12 (i above), so both options reach the same amount by the goal date.

Worked example

A course costs ₹10,00,000 today, is needed in 15 years, with 6% cost inflation and a 12% expected return.

  1. Future cost = ₹10,00,000 × 1.0615 = ₹10,00,000 × 2.396558 = ₹23,96,558.19
  2. SIP factor for 180 months at 1% a month = 504.576
  3. Monthly SIP = ₹23,96,558.19 ÷ 504.576 = ₹4,749.65
  4. Or invest ₹3,99,706.03 today, which grows to the same amount

Frequently asked questions

What does the child education planner work out?

It estimates what a course that costs a certain amount today may cost when your child needs it, and how much you would need to invest every month (or as a lump sum today) to have that amount ready.

Why should I include inflation?

Education costs usually rise over time, so the same course will cost more in future. Leaving inflation out can make a goal look much smaller than it is. Enter the rate you expect for the kind of course you are planning for.

What cost should I enter?

Enter today's total cost of the course you have in mind: fees, and if you like, hostel, books and travel. If you are not sure, use a range and try both ends to see the difference.

How are my existing savings used?

Money you have already set aside for this goal is assumed to grow at the same return as your SIP, compounded monthly, until the goal date. Whatever is still short is the gap the SIP or lump sum fills.

Should I invest monthly or as a lump sum?

Both reach the same amount at the same return; the lump sum needs less money in total because it is invested longer. Most people invest monthly from income. The calculator shows both so you can choose.

What return should I assume?

Use a rate that suits the investments you plan to use and the time left. As the goal gets close, many people move to safer investments, which usually earn less, so a cautious rate gives you a margin.

Does this include education loans or scholarships?

No. If you expect a scholarship or plan to take an education loan for part of the cost, reduce the cost you enter by that amount.

About these results

Method and timing
Cost grows at the entered inflation once a year. Savings, the SIP and the lump-sum option all compound monthly at the entered return ÷ 12, with the SIP invested at the start of each month.
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This is an estimate for planning only, not financial advice. Education costs, inflation and returns will differ from the figures you enter. Mutual fund investments are subject to market risks, read all scheme related documents carefully.