Child Education Planner India — How Much to Save for IIT, MBA, MBBS 2025
Education costs in India are rising at 10–14% annually — faster than general inflation. An engineering degree that costs ₹8 lakh today will cost ₹25 lakh in 15 years. An IIM MBA at ₹24 lakh today will cost ₹75 lakh in 15 years. Starting early is the only way to avoid an education loan burden on your child.
10–14%
Annual education inflation rate in India — far above CPI
₹75L+
Projected cost of IIM MBA in 15 years at 12% education inflation
₹1,500
Monthly SIP needed for ₹25L education fund in 15 years at 12%
ELSS
Best vehicle for education corpus — tax efficient, equity returns
📐 Formula & How It Works
Education Fund Target = Current Cost × (1 + Education Inflation)^Years
Monthly SIP = Target / [((1+r)^n − 1)/r × (1+r)]
Where education inflation = 10–12%, r = monthly return rate, n = months to child's college entry age.
Example: Child age 3, college at 18 (15 years away). Target: Engineering degree = ₹10L today → Future cost at 12% inflation = ₹54.7 Lakhs. Required SIP at 12% return = ₹15,200/month. Start today!
🛠️ How to Use This Calculator
- Step 1: Enter your child's current age and age at which they'll start college (typically 17–18).
- Step 2: Enter the education goal — engineering, MBBS, MBA, study abroad — and current estimated cost.
- Step 3: Set education inflation at 10–12% (higher than general inflation).
- Step 4: Enter your expected investment return — equity funds at 12% for 10+ year horizon.
- Step 5: Review the required monthly SIP — break it into chunks across different investment vehicles for tax efficiency.
💡 Pro Tips
✓ Start a Sukanya Samriddhi Account (for girl child) — 8.2% tax-free return, 80C benefit, locks in until age 21.
✓ SSY + ELSS combination: SSY for safe debt component (8.2% tax-free), ELSS for equity growth (12%+ expected).
✓ Name the investment folio after the goal ('child education fund') to avoid premature withdrawal.
✓ If your child's college is 10+ years away, keep 80% in equity. Switch to debt gradually in the final 2–3 years before the goal date.
✓ Education loan is a backup, not a plan — borrowing at 10–14% interest for 15 years can cripple your child's early career financially.
❓ Frequently Asked Questions
How much does a top engineering college cost in India in 2025? +
NITs and IITs: ₹8–12 lakh total (4 years). Private engineering colleges: ₹6–25 lakh total. Top private colleges (Manipal, VIT, BITS Pilani): ₹12–20 lakh. Add ₹8–12 lakh for living expenses outside home. Study abroad (US/UK): ₹80L–₹2 Cr total.
How much does an IIM MBA cost in 2025? +
IIM-A, B, C: ₹24–28 lakh for 2-year PGP. IIM-Calcutta: ₹27 lakh. New IIMs: ₹15–20 lakh. ISB (1-year MBA): ₹42 lakh. At 12% inflation, these costs double every 6 years. An IIM MBA will cost ₹48–56 lakh by 2031.
What is Sukanya Samriddhi Yojana and should I use it? +
SSY is a government-backed savings scheme for girl children — 8.2% tax-free interest, 80C deduction, lock-in until age 21. It is one of the best risk-free savings products for education/marriage goals. Maximum ₹1.5L/year. Ideal for the debt component of education corpus.
ELSS vs child education plan — which is better? +
ELSS (Equity Linked Savings Scheme): Market-linked returns (12–15% historically), 3-year lock-in, 80C deduction — better for the equity component. 'Child Plans' from insurance companies: guaranteed low returns (5–6%) bundled with insurance — usually not recommended as a pure investment product.
When should I start saving for child's education? +
From birth if possible. Starting at birth for a child entering college at 18 gives 18 years of compounding. Starting at age 5 gives 13 years. Starting at age 10 requires 3× the monthly investment for the same corpus. Earlier is dramatically better.
What if I haven't saved enough by the time my child needs college funds? +
Options: Education loans (HDFC Credila, Axis Bank — up to ₹75L for abroad, 10–12% interest). Partial liquidation of investments. Scholarships (JEE/NEET rank-based). Work-study abroad programs. Start saving the rest for post-graduation or higher studies.