Financial Calculators
Overseas Education Calculator
A foreign degree gets costlier on two fronts at once: fees rise there, and the rupee slips here. Plan for both.
Cost when your child enrols
₹1,16,05,659
- Effective inflation (fees x currency)
- 11.2%
- Monthly SIP to be ready
- ₹49,951
Foreign education costs rise on two fronts at once: fee inflation in the destination country and the rupee weakening against its currency. The two compound together, which this calculator models.
Two inflations, compounding together
The sticker price of foreign education rises with the destination country's education inflation. On top of that, the rupee has historically depreciated a few percent a year against major currencies, so the same dollar fee costs more rupees each year. The two multiply, not add.
A cost that looks like Rs 40 lakh today can more than double in a decade through this combined effect, which is exactly what a parent planning early needs to see.
The combined inflation
Effective rate = (1 + education inflation) x (1 + currency depreciation) - 1\nFuture cost = cost today x (1 + effective)^years\nSIP = future cost / annuity-due factor(return, years)Worked example: a course costing Rs 40,00,000 today, with 8% education inflation and 3% annual rupee depreciation (effective 11.2%), costs about Rs 1,16,05,659 in 10 years; a monthly SIP of about Rs 49,951 at 12% funds it.
Frequently asked questions
Is 3% currency depreciation a fair assumption?
The rupee has depreciated roughly 2-4% a year against the US dollar over long periods, tracking the inflation differential. It is an assumption, not a law; test 0% and 5% to see the range.
Should this money be in equity till the admission year?
Largely yes while the horizon exceeds 7-8 years, then glide into stable avenues over the final 2-3 years so a market dip cannot collide with an admission letter.
What about scholarships and education loans?
Plan the SIP for the full cost; treat scholarships as a bonus and loans as the fallback, not the plan. An 80E-eligible loan can still bridge any final gap.
Does the calculator include living costs?
Enter fees plus living costs as the total in INR. Living costs inflate similarly and belong in the same target.
Their ambition, your preparation.
We build education goals that survive both inflation and exchange rates.