Free Child Education Fund calculator with clear step-by-step results.
Inflates each individual year of the course separately, because a four-year degree starting in a decade has its final year priced thirteen years out, not ten. Existing savings are compounded forward, and the remaining shortfall is converted into a level monthly contribution.
Future cost of year k
Cost = today's annual cost x (1 + education inflation)^(years until start + k)
Monthly saving
Monthly = shortfall / (((1 + monthly return)^months - 1) / monthly return)
Because fees keep rising while the student is enrolled. Inflating only to the start date understates a four-year course by roughly 8% at 5% inflation.
Historically yes - tuition has outpaced CPI in most countries by one to three points, which is why 5% is a common planning assumption when CPI is 2-3%.