How it’s calculated
- Future cost = today’s cost × (1 + education inflation)years.
- Monthly plan: the SIP needed to reach that future cost, using future cost × r ÷ ((1 + r)n − 1), with r = return ÷ 12 ÷ 100 and n = months.
- Lump sum plan: the amount to invest today, future cost ÷ (1 + return)years.
Example: a course costing ₹10,00,000 today, needed in 10 years, with 6% education inflation and a 10% return, will cost about ₹17,90,848. That is about ₹8,742 a month, or ₹6,90,449 invested once today.