How do you calculate education ROI?

Education ROI is calculated by comparing the additional lifetime earnings from a degree against the total cost (tuition + opportunity cost). ROI = (Lifetime Earnings Increase - Total Cost) / Total Cost. A positive ROI means the investment pays off financially.

What is opportunity cost in education?

Opportunity cost is the income you give up while studying. For a 4-year degree, if you could have earned $40,000/year working, your opportunity cost is $160,000. This is often larger than tuition itself and should be included in ROI calculations.

Which degrees have the highest ROI?

Engineering, computer science, nursing, and business degrees typically show the highest ROI. However, ROI varies significantly by school, location, and individual career trajectory. A community college nursing degree often has better ROI than an expensive private university liberal arts degree.

Should I consider non-financial benefits?

Yes! Education provides non-financial benefits like job satisfaction, career flexibility, intellectual growth, and social connections. Our calculator focuses on financial ROI, but these factors should influence your decision too.

Free Tool

Degree ROI Calculator

Calculate the financial return on your education investment. Make informed decisions about college, certifications, and career paths.

Enter Your Numbers

Total Education Cost

Tuition, fees, books, and living expenses

Years to Complete

Current/Alternative Salary

What you could earn without the degree

Expected Salary After Degree

Years Until Retirement

Your ROI Analysis

Enter your education costs and salary expectations to see your ROI

Frequently Asked Questions

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