Priyanka Personal Finance
Smart Money · Simple Words · India
Smart Money · Simple Words · India
Education inflation is 10–12% a year, so tomorrow's fees are far higher than today's. Pick a goal, enter your child's age, and see the future cost and the monthly SIP to start now. Every year you delay costs more.
| Start | Monthly SIP | Extra vs now |
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Estimate only · Not financial advice · Education inflation is typically higher than general inflation · Returns are not guaranteed · Actual costs vary by institute & country
Education is one of the biggest expenses an Indian family plans for — and it inflates faster than almost anything else, roughly 10–12% a year. A ₹10 lakh engineering degree today can cost ₹40 lakh or more in 15 years, and studying abroad can run into crores. The good news: with a 15-year runway, a disciplined monthly SIP in equity mutual funds can comfortably build the corpus — if you start early.
For a girl child, also look at Sukanya Samriddhi (SSY) — a safe, tax-free option.
Education inflation in India runs about 10-12% a year — higher than general inflation. So a course that costs ₹10 lakh today can cost ₹40+ lakh in 15 years. This planner applies education inflation to the current cost to show the future amount you'll actually need.
Enter your child's age and the target course. The planner computes the inflation-adjusted future cost and, using an expected investment return, the monthly SIP you need from today. Starting early makes the SIP dramatically smaller.
Compounding needs time. If you start when your child is 2-3, a modest SIP can build the corpus. Delay by even 3-5 years and the monthly amount needed can rise sharply because there are fewer years to compound and fewer instalments.
For a horizon of 10+ years, equity mutual fund SIPs have historically beaten education inflation. As the goal nears (last 2-3 years), gradually shift to safer debt or FDs to protect the corpus. For a girl child, Sukanya Samriddhi is also a strong tax-free option.