SIP Calculator: Can ₹20,000 Monthly Build ₹50 Lakh for Your Child’s Education?

Planning your child’s higher education is one of the most important long-term financial goals for parents. With education costs rising rapidly, starting early with a disciplined investment plan can make a major difference.

A Systematic Investment Plan (SIP) helps you build a sizeable education fund through consistent investing and the power of compounding. Here’s how a monthly SIP of ₹20,000 can help you prepare for future academic expenses.

How Does Your Child’s Education Fund Grow?

A SIP calculator helps estimate how your investment will grow over time.

• Monthly SIP: ₹20,000
• Investment duration: 11 years
• Expected return: 12% per annum
• Total amount invested: ₹26,40,000
• Estimated returns: ₹28,52,296
• Future value (corpus): ₹54,92,296

With disciplined investing, your child’s education fund grows to over ₹50 lakh, more than doubling the invested amount.

What Can a ₹50 Lakh Corpus Cover?

A corpus of this scale can fund a variety of higher education needs, including MBA or engineering fees at leading private universities in India. It can also cover tuition for overseas education in mid-range fee countries and support professional courses such as design, media or medical entrance preparation.

In addition, it can accommodate hostel, travel and other academic-related expenses during higher studies. This makes the SIP strategy a strong foundation for planning significant academic goals.

Why Is an 11-Year Investment Horizon Effective?

An 11-year investment tenure allows compounding to work efficiently as your SIP grows steadily while your child progresses from primary to higher secondary school. It enables you to build a sizeable corpus before entrance tests and admission processes begin.

Over a decade, market volatility also tends to smooth out, supporting more stable long-term returns. This timeframe therefore offers both strong growth potential and solid financial preparedness.

Who Should Consider This SIP Scenario?

A monthly SIP of ₹20,000 for 11 years is suitable for:

• Parents with children aged 5–7 years
• Families planning for private university education
• Those preparing early for undergraduate or postgraduate expenses
• Parents comfortable with equity-oriented mutual funds for long-term wealth creation

Starting early helps reduce financial stress later and makes education planning more manageable.

Read More: Can a ₹21,000 Monthly SIP Help You Retire Early With a ₹5 Crore Corpus.

Conclusion

A ₹20,000 monthly SIP invested for 11 years at an expected return of 12% can help you build an education fund worth over ₹50 lakh. With education expenses rising every year, early and consistent investing ensures financial readiness for your child’s academic aspirations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.