Higher education plays an important role in people’s lives. Education planning should never be unplanned.
Better education planning better be the educational experience your kids will get in the future.
Let us use this calculator and be aware of the most important investment of your life and your kid’s life.
Points to consider for using this calculator:
- You can keep an expected rate on the returns of an investment to be around 12%.
- Keep the inflation rate to be 6%.
- Keep a list of top colleges where you want to send your kids for their studies and note down their overall current fees.
The calculator will give you the Investment required per month to meet your child’s cost of education.
Education Planning Calculator: Illustration
Example 1: Education Planning for top Universities in the US
The United States is a hub of top colleges and quality education. Let’s say your son is 4 years old now, and you want to send him to Harvard Business School for an MBA when he attains 22 years of age.
The fees of the Harvard MBA program in Indian Rupees is Rs. 1 crore, let’s take Rs. 1.5 crores after including all other additional expenses.
Now your goal is to accumulate a corpus of Rs.1.5 crores in 18 years. And, let’s say you haven’t saved anything so far for this purpose.
Use this calculator to find out how much you should invest per month to achieve this goal, by taking the points under consideration, mentioned in the previous section!
So, if you enter these values in the calculator, you will get:
The future value of the cost of education: Rs. 4,28,15,087
And, the investment required to meet your child’s cost of education is Rs. 16,406/- per month.
Example 2: Education Planning for Indian Universities
Let’s say your child is 8 years old and your child will join the undergraduate program in India when s/he attains the age of 18 years.
And the overall cost of the undergraduate program in your chosen university is Rs. 15 lacs
Therefore, your goal is to accumulate a corpus of Rs.15 Lacs in 10 years duration. And, let’s say you’ve already saved Rs.1 Lacs for this purpose.
Enter these values in the calculator, you will get:
The future value of the cost of education: Rs. 26,86,272
And, the investment required to meet your child’s cost of education is Rs. 2,827/- per month.
Now you can use this calculator customized for your needs.
If you have any queries, you can post them in the comment below.
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