A ₹20 lakh course today is not a ₹20 lakh goal later
Education planning is unusual because both sides of the calculation can move: course costs can rise while investments may grow. Using one generic inflation rate for both hides the real decision.
If a course costs ₹20 lakh today, the future cost under different education-inflation assumptions would be approximately:
| Years away | 6% inflation | 8% inflation | 10% inflation |
|---|---|---|---|
| 10 years | ₹35.82 lakh | ₹43.18 lakh | ₹51.87 lakh |
| 15 years | ₹47.93 lakh | ₹63.44 lakh | ₹83.54 lakh |
| 20 years | ₹64.14 lakh | ₹93.22 lakh | ₹1.35 crore |
Those are not forecasts. They are planning scenarios showing why the inflation assumption deserves its own field.
Existing savings can do part of the work
Assume the future education cost is ₹63.44 lakh in 15 years, you already have ₹5 lakh saved, and you use a 10% investment-return assumption. That existing ₹5 lakh could grow to roughly ₹20.9 lakh, leaving a projected funding gap around ₹42.5 lakh.
The monthly SIP should be solved from that gap — not from the full future course cost.
Required SIP examples
Using a 10% return assumption and no existing corpus, the SIP needed to fund an 8%-inflation ₹20 lakh current education cost is approximately:
| Horizon | Future cost | Required monthly SIP |
|---|---|---|
| 10 years | ₹43.18 lakh | about ₹21,300 |
| 15 years | ₹63.44 lakh | about ₹15,400 |
| 20 years | ₹93.22 lakh | about ₹12,300 |
The exact output depends on contribution timing and compounding convention; use the planner for your own scenario rather than treating this table as a quote.
Conservative and higher-return cases matter
Parents often focus on the return assumption because it is the easiest input to change. But increasing the assumed return does not make a goal safer. A better plan is to test:
- a higher education-inflation case,
- a lower investment-return case,
- and a base case.
If the monthly contribution remains manageable in the first two, the plan has more resilience.
College cost is more than tuition
Depending on the goal, include costs such as accommodation, travel, equipment, deposits and currency exposure. For overseas education, exchange rates can matter as much as tuition inflation.
Frequently asked questions
Is 8% education inflation guaranteed?
No. It is only an assumption for scenario planning. Actual cost growth varies by institution, course and location.
Should I plan in SIP or lumpsum mode?
Use whichever matches your available cash flow. The planner shows both against the same funding gap so you can combine them if needed.
What if my child receives a scholarship?
Treat a scholarship as upside rather than assuming it in the core plan unless it is already confirmed.
Should I include an education loan in the target?
Keep funding and borrowing separate. First estimate the cost; then use the Education Loan EMI Calculator for the portion you may borrow.