Education return estimate
Degree ROI Calculator
Use this Degree ROI Calculator to compare education and opportunity costs with projected earnings differences, payback time, net benefit, and return on investment.
Calculator
Estimate the financial return of a degree
Compare direct and opportunity costs with projected incremental career earnings.
Career earnings comparison
| Career year | With degree | Alternative | Incremental earnings | Net position |
|---|---|---|---|---|
| Year 1 | $60,000 | $38,000 | $22,000 | -$163,509 |
| Year 2 | $61,800 | $38,950 | $22,850 | -$140,659 |
| Year 3 | $63,654 | $39,924 | $23,730 | -$116,929 |
| Year 4 | $65,564 | $40,922 | $24,642 | -$92,287 |
| Year 5 | $67,531 | $41,945 | $25,586 | -$66,701 |
| Year 6 | $69,556 | $42,994 | $26,563 | -$40,138 |
| Year 7 | $71,643 | $44,068 | $27,575 | -$12,563 |
| Year 8 | $73,792 | $45,170 | $28,622 | $16,059 |
| Year 9 | $76,006 | $46,299 | $29,707 | $45,766 |
| Year 10 | $78,286 | $47,457 | $30,830 | $76,595 |
| Year 11 | $80,635 | $48,643 | $31,992 | $108,587 |
| Year 12 | $83,054 | $49,859 | $33,195 | $141,782 |
| Year 13 | $85,546 | $51,106 | $34,440 | $176,222 |
| Year 14 | $88,112 | $52,383 | $35,729 | $211,950 |
| Year 15 | $90,755 | $53,693 | $37,062 | $249,013 |
| Year 16 | $93,478 | $55,035 | $38,443 | $287,456 |
| Year 17 | $96,282 | $56,411 | $39,871 | $327,327 |
| Year 18 | $99,171 | $57,821 | $41,349 | $368,676 |
| Year 19 | $102,146 | $59,267 | $42,879 | $411,555 |
| Year 20 | $105,210 | $60,749 | $44,462 | $456,017 |
About This Degree ROI Calculator
The price of a degree includes more than tuition. For example, required education expenses and earnings given up while studying both affect the size of the investment. The Degree ROI Calculator keeps direct net cost and opportunity cost separate before combining them.
Next, the calculator compares projected gross earnings after the degree with an alternative career path. As a result, it shows the cumulative earnings difference, the point when that difference may recover the investment, and the estimated financial return over the selected period.
How to Use the Degree ROI Calculator
Follow these steps for an accurate Projected Net Benefit result
1Choose the Time Horizons
Enter the expected years in the program and how many career years you want to compare.
2Estimate Net Education Cost
Add annual education costs, gift aid, and expected cost increases for the study period.
3Include Opportunity Cost
Enter annual earnings you expect to give up while completing the program.
4Compare Career Earnings
Estimate starting gross earnings and annual growth with the degree and under the alternative path.
5Review ROI and Payback
Compare total investment with incremental earnings, projected net benefit, ROI, and estimated payback time.
How the Degree ROI Calculator Works
Total Investment
Projected net education costs and earnings given up during study are added together.
Incremental Earnings
Annual earnings with the degree are compared with earnings under the alternative path.
Payback Time
Cumulative incremental earnings are tracked until they recover the total investment.
Projected ROI
Incremental earnings minus investment creates net benefit, which is divided by investment for ROI.
Important Degree ROI Notes
- Earnings are uncertain and differ by completion, program, occupation, location, experience, and economic conditions.
- The calculation uses gross earnings and does not include taxes, loan interest, unemployment, or discounted present value.
- Test conservative and optimistic assumptions instead of relying on one projected result.
- Federal Student Aid recommends considering school cost, graduation, debt, and post-enrollment earnings. Review its College Scorecard guidance.
Frequently Asked Questions
Common questions about calculating GPA at Degree ROI Calculator
Still have questions?
For official GPA rules and academic policies, contact the Degree ROI Calculator Registrar's Office or your academic advisor.Official resources for checking your estimate
Use these sources to check terms, funding options, and the assumptions behind your estimate.
- Compare education debt and earnings
Consumer Financial Protection Bureau
Use school costs and expected income to test your return assumptions.
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