Education Cost Calculator Malaysia
To fund a 4-year degree that costs RM25,000 a year today for a 5-year-old, save about RM 889.77 a month until age 18, assuming 5% education inflation, a 4.10% return (the 2025 Simpan SSPN dividend) and RM5,000 already saved. At future prices the degree costs RM 203,184.58. Enter your child's age and costs below.
Your plan
Save a month
Total RM 203,184.58 for 4 years from age 18
| Years until university | 13 |
|---|---|
| Cost at today's prices | RM 100,000.00 |
| Cost at future prices | RM 203,184.58 |
| Needed on day one | RM 191,024.40 |
| Existing savings (grown) | − RM 8,430.04 |
| Shortfall | RM 182,594.36 |
| Save a month | RM 889.77 |
| Year 1 (age 18) | RM 47,141.23 |
|---|---|
| Year 2 (age 19) | RM 49,498.29 |
| Year 3 (age 20) | RM 51,973.20 |
| Year 4 (age 21) | RM 54,571.86 |
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Monthly saving by child's age (RM25,000 a year today, 4-year degree)
| Age now | Years to save | Cost at future prices | Save a month |
|---|---|---|---|
| 0 | 18 | RM 259,320.73 | RM 768.02 |
| 3 | 15 | RM 224,011.00 | RM 851.20 |
| 5 | 13 | RM 203,184.58 | RM 930.85 |
| 7 | 11 | RM 184,294.41 | RM 1,042.08 |
| 10 | 8 | RM 159,200.45 | RM 1,319.69 |
| 12 | 6 | RM 144,399.50 | RM 1,664.57 |
| 15 | 3 | RM 124,737.72 | RM 3,060.04 |
How the education cost is worked out
- Each year's cost = today's yearly cost × (1 + inflation)^(years until that year).
- Needed on day one = each year's cost discounted at the savings return to the start of university.
- Existing savings grow at the savings return until then.
- Monthly saving = shortfall ÷ the future value of saving RM1 at the start of each month.
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Monthly saving by yearly cost (child aged 5, nothing saved)
| Cost a year today | 4 years today | 4 years at future prices | Save a month |
|---|---|---|---|
| RM 10,000.00 | RM 40,000.00 | RM 81,273.84 | RM 372.34 |
| RM 15,000.00 | RM 60,000.00 | RM 121,910.75 | RM 558.51 |
| RM 25,000.00 | RM 100,000.00 | RM 203,184.58 | RM 930.85 |
| RM 40,000.00 | RM 160,000.00 | RM 325,095.34 | RM 1,489.36 |
| RM 60,000.00 | RM 240,000.00 | RM 487,643.02 | RM 2,234.05 |
Saving for education in Malaysia
- Simpan SSPN: 4.10% dividend for 2025 and up to RM8,000 tax relief a year until YA2027.
- Start early: each year of delay raises the monthly amount sharply.
- Review yearly: update costs, inflation and your savings as your child grows.
Sources
- Bernama: 4.10% Simpan SSPN dividend for 2025
- RinggitPlus: SSPN tax relief
- Investopedia: Future value
Disclaimer: A planning estimate. Inflation and returns are assumptions; actual fees and returns will differ.
Frequently asked questions
How much should I save a month for my child's university?
For a 5-year-old starting a 4-year degree at 18 that costs RM25,000 a year today, with 5% education inflation, a 4.10% return and RM5,000 already saved, save about RM 889.77 a month. Enter your own costs for your figure.
How much will university cost in the future?
Grow today's cost by education inflation for each year until that year of study. RM25,000 a year today becomes RM 47,141.23 in the first year 13 years from now at 5%, and the 4-year degree totals RM 203,184.58.
Why start saving early?
More months and more compounding. With the same RM25,000-a-year degree, starting at birth with nothing saved needs about RM 768.02 a month, and starting at age 12 about RM 1,664.57 a month.
What education inflation rate should I use?
It is your assumption. Fees and living costs usually rise faster than general inflation, so many parents plan with 5% to 6% a year. With no inflation and no return, the example needs RM 641.03 a month.
Where should I keep education savings?
Simpan SSPN paid a 4.10% dividend for 2025 and gives up to RM8,000 of tax relief a year until YA2027, which suits education savings. ASB, EPF and unit trusts are other options with different risks and access.
What costs should I include?
Tuition fees, accommodation, food, transport, books, a laptop and other living costs for each year. Public university fees are lower than private ones, but living costs apply to both.
What if my child gets a scholarship or PTPTN loan?
Scholarships reduce what you need; a PTPTN loan shifts the cost to your child after graduation. Plan for the full cost and treat any award as a bonus.
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