SIP for Child Education Calculator
Education costs in India are rising at 10-12% every year. Use this calculator to find out exactly how much monthly SIP you need to secure your child's college fund.
The Reality of Education Inflation
A course that costs ₹20.00 L today will cost ₹83.54 L in 15 years (assuming 10% inflation). Start planning now.
Goal Details
Target Corpus (Future Cost)
₹83.54 L
Monthly SIP Needed
₹16.56 K
Total Invested
₹29.80 L
Gains: ₹53.74 L
Too high? Use 10% Step-Up SIP
Start lower and increase your SIP by 10% every year.
₹9.62 K
Starting SIP
Approximate SIP Needed for Different Courses
Assuming 15 years to goal, 10% education inflation, and 12% expected SIP returns.
| Course | Today's Cost | In 15 Years (10% Infl) | SIP Needed (12% return) |
|---|---|---|---|
| Engineering (Govt) | ₹5 Lakhs | ₹20.9 Lakhs | ₹5,700/mo |
| Engineering (Private) | ₹20 Lakhs | ₹83.5 Lakhs | ₹22,700/mo |
| Medical (MBBS) | ₹50 Lakhs | ₹2.09 Crores | ₹56,700/mo |
| MBA (Top IIM) | ₹30 Lakhs | ₹1.25 Crores | ₹34,000/mo |
| B.Tech + MBA Abroad | ₹80 Lakhs | ₹3.34 Crores | ₹90,800/mo |
1. Why Education Inflation in India is 10%+
While standard consumer inflation (CPI) in India fluctuates around 5-6%, education costs rise much faster. Increased infrastructure costs, faculty salaries, and demand for premium education push fees up by 10-12% annually. A ₹10 Lakh degree today will likely cost over ₹40 Lakhs in 15 years.
2. When to Start? The Cost of Delay
Starting early is the single most important factor. If your target is ₹1 Crore for college at age 18:
• Start at age 0 (18 yrs to invest): ~₹13,000/month
• Start at age 5 (13 yrs to invest): ~₹25,000/month
• Start at age 10 (8 yrs to invest): ~₹63,000/month
Delaying by just 5 years nearly doubles the required SIP.
3. Best Mutual Fund Categories for Education
• 10+ Years Away: Flexi-cap or Large & Mid-cap funds for high growth.
• 5-10 Years Away: Aggressive Hybrid funds for balanced risk.
• Less than 3 Years Away: Move money to Debt funds or FDs to protect the capital from market crashes right before fees are due.
How to Use This Calculator
Adjust the inputs
Use the sliders or text boxes to enter your specific financial numbers.
Review the charts
The interactive charts will update immediately, showing a visual breakdown of your investments and returns.
Analyze the results
Look at the summary cards and tables to understand your total invested amount, estimated returns, and final corpus.
Frequently Asked Questions
How much SIP do I need for my child's education?
It depends on the current cost, years to college, and inflation. For a ₹20 Lakh course in 15 years at 10% inflation, you need about ₹22,700/month at 12% returns.
What is education inflation in India?
Education inflation in India is typically 10-12%, significantly higher than regular retail inflation (CPI) which hovers around 5-6%.
Should I buy a child plan or do SIP for education?
Equity Mutual Fund SIPs are generally better than traditional child plans as they offer higher returns (10-14%) to beat education inflation, whereas child plans often yield only 5-6%.
How much should I save for IIT/NIT education?
A 4-year B.Tech at an IIT currently costs ₹10-12 Lakhs. In 15 years, at 10% inflation, it will cost around ₹40-50 Lakhs. Plan your SIPs accordingly.
Can I use PPF instead of SIP for child education?
PPF is safe and tax-free but offers ~7.1% returns, which fails to beat 10% education inflation. It is best used for the debt portion of your portfolio, not the primary growth engine.