Education Fund Calculator
Estimate how much you need to save each month to pay for a future course of study once fee inflation is included.
Quick answer
An education fund target is the inflated cost of each study year discounted back at your expected return. The monthly saving is the shortfall after your existing savings grow, spread over the months with the future value of an annuity formula.
Education Fund Calculator
Cost of one study year at today's prices.
Future Total Cost
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Fund Needed at Start of Study
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Savings Grown by Then
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Total You Will Deposit
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Required Monthly Saving
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Year-by-Year Fund
| Year | Phase | Deposits (₹) | Cost Paid (₹) | Year-End Balance (₹) |
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Assumptions & method
- Cost in study year k (k = 0, 1, …) = current cost × (1 + education inflation)^(years until start + k). Each year's cost is paid on the first day of that study year.
- Fund needed at start of study = Σ cost_k ÷ (1 + return)^k, because unspent money keeps earning the return.
- Savings grow at the annual return for the saving period. Monthly rate = (1 + annual return)^(1/12) − 1, with deposits at the end of each month.
- Required monthly saving = shortfall × monthly rate ÷ ((1 + monthly rate)^months − 1); at a 0% return it is shortfall ÷ months.
- Returns and inflation are assumed constant. Taxes, fees on the investment, scholarships and loans are not included.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How an education fund is sized
Education costs are paid years from now, and they usually rise faster than prices in general. The calculator first grows today's annual cost at your education inflation rate to the start of each study year. It then asks how much money would need to be in the fund on the first day of study to pay all of those yearly bills, assuming the unspent balance keeps earning your expected return. Your current savings grow until then, and the gap is spread over monthly deposits. The table follows the balance year by year, so you can see the fund build and then run down.