Education Fund Planner
Enter today's course cost and we'll project its future cost plus the SIP needed.
Why education costs rise faster than general inflation
Education inflation in India has historically run around 10% per year — well above general consumer inflation of roughly 6%. Private school fees, college tuition, hostel and infrastructure costs, and faculty salaries have all risen rapidly as demand for quality education has outpaced supply, especially in engineering, medical and management courses.
Typical education costs in India today
- Government college/school: ₹5-10 lakh for a full degree, heavily subsidised.
- Private engineering degree: ₹8-15 lakh for the full 4-year course.
- Private medical (MBBS): ₹50 lakh to over ₹1 crore depending on the college and state quota.
- Studying abroad (bachelor's/master's): ₹50 lakh to ₹1.5 crore including tuition and living costs.
How this calculator works
We project today's course cost forward at 10% education inflation to estimate its future cost, then calculate the monthly SIP required — at your chosen expected return — to accumulate that exact amount by the time your child needs it. The earlier you start, the smaller your required monthly SIP, because compounding has more years to work.
Frequently asked questions
Because private school and college fees, infrastructure costs, and faculty salaries have all risen rapidly as demand for quality education has grown faster than supply — historically around 10% per year versus ~6% general inflation.
A private engineering degree typically costs ₹8-15 lakh for the full course, a private MBBS can cost ₹50 lakh to over ₹1 crore, and studying abroad commonly costs ₹50 lakh to ₹1.5 crore including living expenses.
Most planners suggest a diversified equity mutual fund SIP over insurance-linked child education plans, due to better long-term returns, full liquidity and lower costs — with separate term insurance covering the protection need. See our SIP calculator to model this.