# Education ROI Calculator

> Weigh a degree or course against its cost and the earnings you give up while studying: payback years, lifetime gain, ROI and net present value.

Category: Education · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/education-roi-calculator

A qualification pays off when the extra salary it brings outweighs what it costs, including the pay you give up while studying. Enter your own salary estimates to see how long that takes.

Also called: Degree ROI calculator, College ROI calculator.

## Inputs
- Total cost of study (default 80000)
- Years of study (unit years; default 4)
- Yearly salary without the qualification (default 30000)
- Yearly salary with the qualification (default 50000)
- Working years afterwards (unit years; default 30)
- Discount rate (unit %; default 0; optional)
- Currency

## Results
- Return on investment
- Payback period
- Total investment
- Earnings given up while studying
- Extra salary per year
- Lifetime net gain
- Net present value

## Formula

```
Investment = Cost + Salary without × Study years;  Premium = Salary with − Salary without;  ROI = (Premium × Work years − Investment) ÷ Investment × 100;  Payback = Investment ÷ Premium
```

Where:
- Premium: extra yearly salary from the qualification
- NPV: Premium × (1 − (1 + d)^−Work years) ÷ d − Investment, d = discount rate

## Worked example
1. Investment = 80,000 + 30,000 × 4 = 200,000.
2. Premium = 50,000 − 30,000 = 20,000 a year; payback = 200,000 ÷ 20,000 = 10 years.
3. Gain over 30 years = 600,000 − 200,000 = 400,000, an ROI of 200%.

**Result:** The degree costs 200,000 including lost pay, pays back in 10 years and returns 400,000 more than it costs over 30 years.

## What the result means

A positive NPV at a realistic discount rate (for example the return you could get investing the money instead) is a stronger test than raw ROI, because money earned decades from now is worth less today.

## Assumptions and limits
- Salaries are in today’s money and the premium stays the same every year.
- Costs are counted when study starts and are not discounted.
- Salary estimates are yours; actual earnings vary widely by field, institution and person.
- Taxes, loan interest and non-financial benefits are not included.

## Questions

### Why include earnings given up?

Years spent studying full time are years without a full salary. For many people that is a bigger cost than tuition.

### What discount rate should I use?

Commonly 3–7%: roughly what the money could earn if invested instead, after inflation.

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_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/education-roi-calculator