College Degree ROI Calculator
Lifetime income premium vs total cost (tuition + 4 years of foregone earnings).
Result
Degree NPV
$188,977
Positive — degree is profitable.
- Total cost (tuition + foregone)$240,000
- PV of income premium$428,977
- NPV$188,977
- ROI %78.7%
- Annual premium$25,000
- Working years40
Step-by-step
- Total cost = tuition + foregone earnings = $240,000.
- PV of $25,000/yr for 40 years at 5.0% = $428,977.
- NPV = $428,977 − $240,000 = $188,977.
How to use this calculator
- Enter total tuition and 4-year foregone earnings.
- Enter expected annual premium and working years.
- Read NPV — positive means good investment.
About this calculator
Education ROI compares the lifetime income premium (the difference between income with vs without the degree) against the total cost (tuition + 4 years of foregone earnings). Discounted to present value because the premium spreads over a lifetime. The average bachelor's degree adds $20-30k/yr; positive ROI for most US degrees but varies sharply by major and school.
Frequently asked
BLS data: bachelor's holders earn ~$25-30k/yr more than high-school grads. Field-dependent: STEM/business 40-60k; liberal arts 10-20k.
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