College Degree ROI Calculator

Lifetime income premium vs total cost (tuition + 4 years of foregone earnings).

Inputs

Bachelor's avg premium: $20-30k/yr above HS.

Result

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General calculation reads

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How Not to Be Wrong
Jordan Ellenberg - math thinking
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The Joy of X
Steven Strogatz - accessible math
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Scientific calculator (Casio fx-991EX)
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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

How big is the average premium?+
BLS data: bachelor's holders earn ~$25-30k/yr more than high-school grads. Field-dependent: STEM/business 40-60k; liberal arts 10-20k.
What about scholarships?+
Subtract from tuition. A "free ride" makes ROI very compelling almost regardless of major.
Should I include student loan interest?+
For more precise: yes. Treat as additional cost. Many graduate with $30-40k debt; interest at 6-7% over 10 years adds ~$15k.
When does college NOT pay off?+
Low-premium fields + high tuition + short careers. Theatre at $200k tuition with $5k premium will struggle to pay back.
What about graduate degrees?+
Same framework. Premium varies wildly: MBAs (especially top-20) often have very high ROI; PhDs in non-STEM often negative.

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