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Calculates cost of education
Calculates required monthly investment
Takes education inflation into consideration
Recommends the best investment options
What is a Child Education Planning Calculator and how to use it?
The child plan calculator is a very easy to use online tool that helps you estimate how much money you will need to invest per month to meet your child’s future education cost. You need to enter a few details, such as -
Your child’s age
Enter your child’s current age so that it can be used to calculate the investment tenure.
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Age at which your child will require the funds
Enter the age of your child when the funds will be needed for his/her education. This also helps in determining the investment tenure. For example, suppose your child is 7 years old and he/she will need the funds for engineering at 18 years then the investment tenure will be 11 years (18-7 years).
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Rate of inflation
Enter the rate of education inflation in India, which is currently 4.12% as of May, 2025c.
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Current cost of education
This is the current cost of the education that your child wants to pursue. For example, if your child wants to pursue engineering in India then enter an average cost of Rs. 8 lakh.
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Expected rate of return
This is the rate of return that you expect on your investment every year. You can choose a child education plan as per your risk appetite. For example, if you want to invest in a no-risk fixed return financial product then you can enter 6-7% or if you want to invest in a high-risk market-linked financial product then you can enter 10-12%.
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Once you provide the above information the calculator helps you with the inflation-adjusted future cost of education and the required monthly investment to reach your goal.
Let’s understand the calculations for child education planning with the help of an example:
Virat's 8-year-old daughter will pursue engineering at age 18. Tuition today is Rs. 10 lakh, and he expects a return of 8% per annum.
Results:
Monthly investment (to meet the goal in 10 years): Rs. 14,084.
Cost of education after 10 years: Rs. 10 lakh x (1.10)^10 = Rs. 25,93,742.
Thus, Virat needs to invest Rs. 14,084/month for 10 years to cover the educational cost of Rs. 25,93,742.
Step-by-Step Guide to Use the Child Education Calculator
Planning your child’s higher education becomes easier if you use an online child education calculator. Here is how you can utilise it in an effective manner to figure out your future savings:
Enter your child’s current age: This helps the calculator determine the number of years left until your child begins higher education.
Set your goal amount: Input the estimated child’s future education cost based on present expenditures or your target institution.
Add the expected inflation rate: Education expenditures rise over time. So, factoring in inflation ensures your plan accounts for future price rises.
Zero in on an appropriate investment horizon: Specify how many years you plan to invest before your child begins higher education.
Enter the expected rate of return: Zero in on a realistic rate depending on your investment preference or prevailing plans' performance.
Once you fill out such details, the online calculator instantly shows how much you require to invest on a regular basis to attain your goal. It is a simple, personalised instrument that assists you in planning smartly and prudently and secures your child’s academic future with utter confidence.
How much should you save for Your Child’s Education?
The educational cost is rising rapidly, and figuring out how much you must save depends on particular factors, i.e., inflation, program type, duration and present cost. For example, a program that costs ₹15 lakhs today could cost more than ₹30–₹35 lakhs in 10–12 years owing to inflation. Let's understand this with examples:
Let’s understand with examples:
Example 1: If your goal equals ₹20 lakhs in a span of 15 years and your investment earns returns of 8% on an annual basis, you will need to save nearly ₹5,000 per month.
Example 2: For a target of ₹40 lakh in a span of 10 years with the same returns, your month-on-month savings would increase to about ₹22,000.
#the values shown are for illustrative purpose only
Beginning early gives your invested funds more time to grow, which minimises the monthly burden. Delaying even by five years could double the required contribution. Examine your plan on a regular basis and adjust depending on your anticipated returns and risk appetite level. Make sure to choose equity-heavy options in the case of long-term goals and safer financial instruments as the goal nears.
Additionally, it is equally important to secure your child’s education goal with adequate life insurance. Having a life insurance plan—especially a term plan—ensures that your child’s future remains financially protected even in your absence. A well-structured life insurance policy can provide the necessary payout to cover education costs, ensuring you’re planning continues uninterrupted despite uncertainties. Some child education plans also combine insurance with disciplined savings, offering a dual benefit of protection and goal-based wealth creation.
With thoughtful and prudent planning, you can build the appropriate corpus to fund your child’s higher education with zero need for any financial stress.
What are the factors to consider while planning for your child’s education expenses?
Planning your child’s higher education requires a thoughtful balance of goal-setting, cost estimation, and financial discipline. Here are the factors you must note:
Defining Education Objective
Begin by setting a clear goal. Decide the level and stream of education your child might want to pursue, whether in India or abroad, and whether it will be through a public or private educational institution. This clarity assists you in figuring out the scale of funding required.
Estimating Future Cost of Education
Education expenditures rise each year owing to inflation. Assess the current cost, add an estimated inflation rate and consider course duration and other expenses like accommodation or travel. Making use of an online education calculator can simplify such projections.
Evaluation of Current Financial Situation
Examine your income, expenditures, prevailing savings and investments to better understand your funding capacity. Factor in ongoing liabilities and make sure you have sufficient contingency funds in place to manage unforeseen requirements without disrupting your education goals.
Choosing Suitable Investment Options
Zero in on investment products depending on your investment frame and risk appetite level. Look out for options that endow tax benefits, diversified returns and liquidity when required. ULIP, child plans and mutual funds can be prudent choices depending on your goals.
Financial Protection
Protect your plan with proper life insurance and health insurance policies. This ensures that, even in your absence, your child's higher education remains financially secure.
Proactive Adjustments
Examine your plan on a periodic basis and adjust your investments as per your income, goals or market scenarios. Periodic monitoring keeps your savings on the correct track and well-aligned with your child’s future aspirations.
Why plan for your child’s education?
As a parent, one thing that matters the most is giving your child a strong foundation, especially in terms of their education. However, with costs rising sharply across the country in all aspects, simply saving up is not enough.
If you look at the expense of pursuing an average engineering degree, it can cost up to Rs. 2 lakhs to Rs. 15 lakhs a, or more, depending on the institution. Studying overseas is even more expensive as Indian students spend approximately Rs. 10 lakhs to Rs. 60 lakhs b annually to study in the US.
You need to start investing in a long-term investment plan in a disciplined manner to take advantage of the power of compounding and create a corpus for your children’s education.
Why Planning for Your Child’s Education Early Matters?
The biggest ally for securing your child’s future is time. When you start financial planning for your child early, especially related to their education, it can make a difference between stressful compromises and seamless progress.
Following are a few reasons why the early plan is not just smart, but an essential move:
Education Costs are rising faster than you think
Higher education costs in India have doubled over the previous decade f. For instance:
If you plan to send your child to study abroad, the total cost, including tuition and living expenses, can go up to Rs. 60 lakhs in the USA b.
Now add 10% inflation in education expenses to that, and this dream can easily feel unachievable if not properly planned.
Remember, the earlier you plan, the more prepared you will be to beat rising costs and inflation.
More time means smaller monthly savings
Early planning your child's educational future stretches your timeline and makes the goal seem light in your pocket. For example:
If you start saving when your child is 5 years old, you may only have to save Rs. 10,000/ month to reach your target.
However, in case you start saving when your child is 12 years old, you may have to save almost Rs. 20,000/ month.
Power of compounding
The earlier you invest, the longer your money has to grow due to the process of compounding. Such as:
Rs. 5,000/ month invested over 15 years at 8% return grows to nearly Rs. 17 lakhs.
Nonetheless, the same Rs. 5,000/ month for just 5 years might barely touch Rs. 3.7 lakhs in total.
Early planning brings financial peace of mind
Knowing that the future of your child is secure gives you:
Confidence supports their dreams to get an education from wherever they want.
Flexibility to explore study-abroad options without financial anxiety.
Freedom from disrupting your own financial stability
Avoid last-minute stress and loans
If you start planning your child’s educational future late, it may lead to:
High-interest education loans
Borrowing from savings meant for other goals (retirement, emergencies)
Emotional stress during crucial academic milestones
Early planning removes panic from the equation. Instead, you will have a steady, pre-built fund ready when the need arises.
Benefits of using a Child Education Planner
Helps You Stay on Track with Your Savings Goal
A child plan calculator helps you set a clear monthly savings target according to your child’s age and educational goals. Instead of guessing a certain amount, you get specific figures, say Rs. 14,084 per month, to reach a future cost of Rs. 25.94 lakhs (as discussed in the example above). Knowing the monthly investment amount also helps you invest in a disciplined manner in your preferred child investment plan.
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Gives You a Clear Financial Plan
The child education plan calculator asks for details like education timeline, current savings, and inflation assumptions. This helps to break a larger goal into a realistic one, which looks achievable by taking small steps. It mostly outlines how you need to contribute each month in a savings plan, at what return, and for how long.
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Estimates the Future Cost of Education
Inflation in the Indian education sector is not static. The education inflation rate in India is 8% to 12%, which is above the general inflation rate of 5% to 6% e. This calculator factors in this riding trend and adjusts the projection of costs accordingly.
For instance, Rs. 10 lakh can be required for your college course in the present day, but that can increase up to Rs. 25 lakhs by the next 10 years. Parents are able to avoid underestimating any future expenses with this realistic forecast. It further prevents any unwanted debt or financial stress in the coming days.
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Let’s You Compare Different Saving Scenarios
One of the key advantages of using an education calculator is the ability to experiment with different savings strategies. You can adjust variables such as the savings amount, investment timeline, or expected rate of return and instantly see how these changes impact your final goal.
Whether you want to test a longer timeline or a 10% return, this tool clarifies the necessary trade-offs. It helps you choose the best investment plan, and most efficient and comfortable strategy for your family and their future.
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Guides you with a step-by-step savings path
Apart from providing a savings goal, the child education plan calculator outlines clear guidance towards your savings journey. It specifies how much to save when to start, and what return rate is essential to reach the goal.
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FAQ on Child Education Plan Calculator
What is Child Education Planning?
Child education planning involves a combination of savings, investment, and insurance to secure your child’s academic future. You can evaluate the investment required for a chosen course using the child education plan calculator. A systematic savings plan will help create a corpus to fulfil this long-term financial goal.
As parents, we want the best for our children and their future which includes their education and other future opportunities. With life being uncertain, increasing inflation and the cost of education in reputed institutions you need to build an adequate financial corpus to meet the needs of your child.
Hence plan your child's education early on and invest in the best child plans to build funds that meet their future financial requirements.
Here are 4 pointers to help you decide: * Be clear about your goals: As parents, we want to give our children the best education and this dream can be achieved only by planning ahead. First, it is important to understand their goals. Once you understand the goals you are aiming for, planning automatically becomes easy with questions like the period of investment, the amount required, and other parameters. This will help you lay a roadmap ahead to meet and understand the future education requirements for your child.
- Understanding Inflation: Inflation has a major impact on the value of investment required. Education only gets more expensive hence it is important to consider future value and amount required to meet the goals set. If you do not calculate your inflation wisely it will cost additional expenses and efforts when required.
- Choose your plan carefully: You need to consider good investment options and this decision needs to be done wisely. Your plan will depend on your risk appetite, volatility of the market and tenure. Do your research well before choosing the financial instrument that meets your goals.
- Protect your goals: In your absence, your appointee, a person that you choose will invest and will use the sum assured. Make sure the appointee is chosen wisely to protect the goal so your child can fulfil their dreams.
Why should I use a child education plan calculator?
Accounting for inflation and evaluating the future education cost can be complicated if done manually. Estimate savings required to accumulate funds to provide for the course fees, accommodation, and other related needs at a future date in a simple way using a child education plan calculator. With the input provided, the calculator estimates the future education cost and shows how much savings are required to have the necessary amount on maturity.
Can I use the calculator for goals other than education, like marriage?
Yes. You can use the calculator for goals other than education. The calculator works on the principle of future cost. It means they help you evaluate the savings required to attain a specific financial goal in the future.
How accurate is the child education plan calculator?
The accuracy of the child education plan calculator depends on the inputs provided and the assumptions. They provide estimates and not the exact cost.
Is the child education plan calculator free to use?
Yes. The child education plan calculator is free to use. You can easily use it to calculate and plan for your child’s future.
How much should I save monthly for my child’s education?
The monthly savings required for your child’s education depend on the course chosen, investment frequency, inflation, and the timeline set to reach the goal.
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a.https://www.shiksha.com/engineering-chp
b.https://www.upgrad.com/study-abroad/articles/cost-of-bachelor-degree-in-usa/
c. https://mospi.gov.in/sites/default/files/press_release/CPI_PR_12Jun25.pdf
e.https://www.edufund.in/blog/impact-of-education-inflation-on-hidden-costs-of-education/
f.https://www.newindianexpress.com/opinions/2024/Aug/27/rising-education-costs-turn-aspirations-into-burdens
ARN - ED/11/25/28353