Child Education Fund Calculator —
Be Ready for the Biggest Goal

Current education costs in India (2026): IIT/NIT engineering: ₹8–12 lakhs total. Private engineering college: ₹15–30 lakhs. MBBS (government): ₹5–10 lakhs. MBBS (private): ₹50 lakhs–₹1.5 Crore. MBA from IIMs: ₹25–35 lakhs. MBA from private institutes (XLRI, SP Jain): ₹20–30 lakhs. MS/MBA abroad (USA, UK, Australia): ₹50 lakhs–₹1.5 Crore (including living expenses). With 10% education inflation, these costs double approximately every 7 years.

Investment strategy based on time horizon: More than 10 years away → 80-100% equity (ELSS, flexi-cap, mid-cap index funds). 5–10 years away → 60% equity, 40% debt (balanced advantage fund or flexi-cap + short-term debt). 3–5 years away → 40% equity, 60% debt. Less than 3 years → 100% debt/liquid funds (no equity risk). Sukanya Samriddhi Yojana (for girls) offers 8.2% tax-free returns — excellent safe option for the debt component. Never use ULIP for education planning — high charges erode returns significantly.

Education inflation in India runs at 10–12% per year historically — significantly higher than the general CPI inflation of 5–6%. Private school fees have risen 15–20% annually in metro cities. College and professional course fees have nearly doubled every 6–7 years. This means a course costing ₹15 lakhs today will cost approximately ₹39 lakhs in 10 years (at 10% inflation) and ₹63 lakhs in 15 years. Planning with 10% education inflation assumption is considered conservative and realistic.

Both strategies have merit. Saving separately gives peace of mind, no interest burden, and complete flexibility. Education loans (8.5–11% interest) have Section 80E tax benefit — the entire interest is deductible for 8 years. For high-cost courses (IIMs, abroad), a combination works best: save 50–70% of projected cost via SIP, and take an education loan for the balance. The loan teaches financial responsibility and the 80E deduction reduces tax burden. Never borrow 100% — partial savings reduce the loan burden significantly.

Sukanya Samriddhi Yojana (SSY) is a government scheme exclusively for girl children below 10 years old. Current rate: 8.2% p.a. (Q1 FY26), fully tax-free (EEE status — investment deductible under 80C, interest tax-free, maturity tax-free). Maximum investment: ₹1.5 lakh/year. Maturity at 21 years from account opening; 50% withdrawal allowed at age 18 for education. SSY is an excellent, risk-free foundation for girl child education planning. Pair it with equity mutual fund SIP for the remaining corpus needed beyond SSY maturity value.