Education Planner

Plan and invest for your child's higher education costs. Adjust for education-specific inflation and mutual fund compounding.

Parameters
₹
Yrs
%
Calculated Results
Inflated College Cost -
Required Monthly SIP -
Required Lump Sum -
Compounding
Inflation
%
Visual Projection
Invested
Corpus
Real Value
Yearly Breakdowns
YearBeginning BalanceWithdrawnInterest EarnedEnding Balance
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Education Cost Inflation Planning

Education costs in India often expand at 8% to 10% annually, which is higher than normal CPI inflation. Accumulating a target fund is crucial.

Formula & Mathematical Approach

Estimates future college costs adjusted for inflation and calculates the monthly savings required.

Future Cost=Current Cost×(1+Inflation100)Years\text{Future Cost} = \text{Current Cost} \times \left(1 + \frac{\text{Inflation}}{100}\right)^{\text{Years}}
Required Monthly SIP=Future Cost[(1+i)Months−1i]×(1+i)\text{Required Monthly SIP} = \frac{\text{Future Cost}}{\left[ \frac{(1 + i)^{\text{Months}} - 1}{i} \right] \times (1 + i)}
Show Plain Text / Excel Formula 
Future Cost = Current Cost * (1 + Inflation / 100) ^ Years
Required SIP = Future Cost / (SIP Compounding Factor)

Key Assumptions

  • Education costs inflate at a specific rate (typically higher than CPI).
  • Growth rates compound monthly.
  • Level monthly contributions are made.