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Education Cost Inflation Calculator

Work out education cost inflation instantly with clear inputs, formula shown and shareable results.

About Education Cost Inflation Calculator

Education inflation typically runs several points above general inflation, so a course costing 600,000 a year today can cost more than 1.4 million a year in a decade. Compounding across the course duration as well as the years until enrolment is what produces the full figure to save towards.

Formulas

Future first-year cost

First year = Current annual cost x (1 + Education inflation)^Years until enrolment

Total future cost

Sum over course years of Current cost x (1 + Inflation)^(Years to enrolment + Year index)

Worked example

With the default values below, Education Cost Inflation Calculator returns Total cost at enrolment prices of $6,495,755.68. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current annual cost of the course
600,000
Years until enrolment
10
Education cost inflation
9
Course durationmaximum 50
4

Results

Total cost at enrolment prices
$6,495,755.68
First-year cost at enrolment
$1,420,418.20
Same course at today's prices
$2,400,000.00
Additional cost from education inflation
$4,095,755.68

Step by step

  1. 1Values used
  2. 2Future first-year cost
  3. 3Total future cost
  4. 4Total cost at enrolment prices= 6,495,755.68
  5. 5First-year cost at enrolment= 1,420,418.20
  6. 6Same course at today's prices= 2,400,000.00
  7. 7Additional cost from education inflation= 4,095,755.68

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is education inflation so high?

Because it is labour-intensive with limited productivity growth, and demand for prestigious institutions is inelastic. Historic rates of 8-11% are common.

What return do I need on savings?

At least the education inflation rate to hold purchasing power. Anything below it means the shortfall grows every year despite saving.

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