How much does higher education cost in India?

Currently, professional courses like engineering, medicine, or MBA cost between Rs. 5 Lakhs to Rs. 25 Lakhs or more in premier institutes. These costs are rising fast due to inflation.

What is education inflation in India?

Education inflation is typically higher than standard retail inflation, historically running at 8% to 10% per year in India.

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Child Education Goal Calculator

Estimate the future cost of higher education in India by accounting for higher academic inflation, and find out the monthly SIP needed to reach it.

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Plan child education fund requirements

Estimate college tuition rates, add academic inflation, and plan monthly savings.

Future education cost Rs. 0

Required monthly SIP Rs. 0

Projected value of current plan Rs. 0

Gap / Surplus Rs. 0

Last updated: May 2026

How this calculator helps

Planning for your child's higher education requires careful, early calculation. Academic inflation in India typically outpaces regular retail inflation (CPI), meaning professional degrees in engineering, medicine, design, or business will cost significantly more in the future. This tool supports your planning by:

Factoring specific academic inflation rates to project the true cost of university in future rupees.
Compounding your current dedicated savings to see how much of the future cost is already covered.
Recommending the monthly SIP required to bridge the remaining fund gap cleanly.

Example calculation

Suppose a college course currently costs Rs. 10,00,000 (10 Lakh) and your child will enter college in 10 years. Factoring in an academic inflation rate of 8% per year, the future cost of that course increases to Rs. 21,58,925.

If you already have Rs. 1,00,000 saved growing at 12% per year, it will grow to Rs. 3,10,585. The remaining gap of Rs. 18,48,340 requires a monthly SIP of Rs. 8,274 over 10 years, assuming a 12% expected annual return.

What this means for you

Higher education planning is a long-term milestone, giving you time to benefit from compounding. If the calculated SIP feels high, consider allocating a portion to tax-free schemes like PPF or SSY (for a daughter) and investing the rest in equity mutual funds to optimize growth over time. Review your education target every year.

Formula used

The child education calculator uses the following formulas:

Future Cost of College (Academic Inflation):
FV_cost = Current_cost * (1 + inflation / 100)^years
Compounded Growth of Current Savings:
FV_savings = Savings * (1 + expected_return / 100)^years
Required Monthly SIP Contribution:
Required_SIP = max(0, FV_cost - FV_savings) / [((1 + r_m)^m - 1) / r_m * (1 + r_m)]
Where r_m = expected_return / 12 / 100 is the monthly return rate, and m = years * 12 is the total months.

Common mistakes

Underestimating inflation: Planning with a standard 5% retail inflation rate when professional college tuition in India rises by 8% to 10% annually.
Delaying investment: Starting when the child is already in high school, which drastically reduces compounding time and increases the required monthly SIP.
Ignoring specific kid-focused savings schemes: Failing to integrate schemes like Sukanya Samriddhi Yojana (SSY) for a girl child.

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Planning guide

Read: The Cost of Dreams - Planning Your Child's Education With Love, Hope & Realism

A heartfelt long-read on balancing parental dreams with financial realism - covering SIPs, SSY, and why starting early changes everything.

Frequently asked questions

Should I plan with education inflation of 8% or higher?

Yes. Private professional colleges in India historically hike tuition by 8% to 10% yearly. Planning with a higher inflation rate is safer.

Is SSY better than mutual fund SIPs for child education?

Sukanya Samriddhi Yojana (SSY) offers guaranteed, tax-free returns for a girl child but has lock-in restrictions. Equities offer higher growth potential but carry market risk. Many planners combine both.

What if my child decides not to go to college?

If you build the corpus in general mutual funds or savings instruments, you can redirect the money to other life goals, startup funds, or retirement.

Should I invest in child-specific insurance plans?

Be cautious. Many child-specific insurance policies combine insurance and investment, which can yield lower returns (4-6%) than mutual funds or PPF. Evaluate options carefully.

Trust note

CalcToPlan calculators are designed for educational and planning purposes only. The results are estimates based on the inputs provided by you. They should not be treated as investment, tax, legal, loan, retirement, or financial advice. Please consult a qualified professional before making major financial decisions.