A worked example: ₹2,00,000/year today, 8% inflation, 4-year program
A program costing ₹2,00,000 a year today, with 8% annual education cost inflation over 4 years, totals ₹9,01,222.40 — with the final year alone costing ₹2,51,942.40, well above the ₹2,00,000 starting figure, and an average annual cost of ₹2,25,305.60 across all four years.
The formula: each year inflated forward, then summed
Year i's cost = current annual cost × (1 + inflation)^i, for years 0 through (years of college − 1) — year 1 uses today's cost unchanged, year 2 inflates it once, and so on. Adding up all these individually-inflated years, rather than just multiplying today's cost by the number of years, is what captures rising costs across the program.
A pricier, shorter, faster-inflating program
A ₹5,00,000/year program at 10% inflation over just 3 years totals ₹16,55,000 — with the final year costing ₹6,05,000, over 20% more than the starting ₹5,00,000, since a higher inflation rate compounds noticeably even over a shorter program.
Why education inflation is treated separately from general inflation
Education costs in India have historically risen faster than general (CPI) inflation — commonly cited in the 8-12% per year range — which is why this projection uses its own inflation assumption rather than a generic figure.
What this projection doesn't include
This projects the recurring annual cost only — one-time costs like admission fees, a laptop, or relocation expenses aren't included, and would need to be added separately for a complete cost picture.