College Degree ROI Calculator
Example: Tuition & fees per year: 22000 $ · Years in school: 4 years · Salary given up per year while studying: 30000 $ · Extra annual salary the degree adds: 25000 $ · Years you will work after graduating: 30 years
| Net lifetime payoff | $542,000 |
| Total cost of the degree | $208,000 |
| Years to break even | 8.32 |
Worked example
A four-year degree at $22,000 tuition a year is $88,000 in tuition, plus $30,000 a year in wages given up over four years, which is $120,000 of forgone income — a total cost of $208,000. If the degree raises your salary by $25,000 a year for a 30-year career, that is $750,000 of extra earnings, for a net lifetime payoff of about $542,000. It takes roughly 8.3 years of the higher salary just to recover the $208,000 cost.
Frequently asked questions
Why include the salary I give up while studying?
Forgone wages are usually the biggest hidden cost of a degree. The years you spend in school full-time are years you are not earning, and that lost income is as real as tuition. Ignoring it makes any degree look far cheaper than it is, especially for graduate programs.
Should I subtract financial aid and scholarships?
Yes. Enter your net tuition — the sticker price minus grants and scholarships you do not repay. Loans still count as cost because you repay them, but grants genuinely reduce the price. This is why the net cost of the same school varies enormously between students.
How do I estimate the salary lift a degree provides?
Compare median earnings for your target field with and without the degree, using government wage data by education level and occupation. Be realistic and field-specific — the lift for engineering or nursing is very different from the average across all majors.
What if the payoff is negative?
A negative net payoff means, on these inputs, the degree does not pay for itself in salary terms over your career. That does not automatically make it a bad choice — some fields require the credential regardless — but it is a signal to seek cheaper tuition, scholarships, or a program with a stronger earnings record.