Calculator inputs
Example data table
| Input | Example value |
|---|---|
| Program length | 4 years |
| Annual tuition | $18,000 |
| Annual fees and books | $2,500 |
| Annual living cost | $12,000 |
| Annual scholarships and grants | $6,000 |
| Annual savings or family support | $5,000 |
| Annual part-time income | $3,500 |
| One-time upfront costs | $1,500 |
| Loan interest rate | 6.25% |
| Loan repayment term | 10 years |
| Starting salary with degree | $62,000 |
| Starting salary without degree | $34,000 |
| Salary growth with degree | 4% |
| Salary growth without degree | 3% |
| Effective tax rate | 22% |
| Discount rate | 5% |
| Analysis horizon | 20 years |
Formula used
Annual School Cost = Tuition + Fees/Books + Living Cost
Annual Cost After Grants = max(Annual School Cost − Scholarships/Grants, 0)
Annual Borrowed = max(Annual Cost After Grants − Cash Contribution, 0)Cash contribution is the annual savings/family support plus part-time income, capped at the remaining cost.
Loan Balance = Σ[Annual Borrowed × (1 + Loan Rate)^Remaining Years]This assumes each year’s borrowing accrues until graduation.
After-Tax Premium = (Degree Salary − No-Degree Salary) × (1 − Tax Rate)
Debt-Adjusted Advantage = After-Tax Premium − Annual Loan Payment
ROI % = ((Total After-Tax Premium − Total Net Cost After Aid) ÷ Total Net Cost After Aid) × 100
NPV = −Total Net Cost After Aid + Σ[After-Tax Premium ÷ (1 + Discount Rate)^Year]
How to use this calculator
- Enter the number of years you expect to stay in school.
- Add annual tuition, fees, books, and living expenses.
- Subtract aid by entering yearly scholarships and grants.
- Enter how much cash support and part-time income helps pay costs.
- Add the student loan rate and repayment term for the debt estimate.
- Compare expected starting salaries with and without the degree.
- Set salary growth, tax rate, discount rate, and analysis years.
- Click Calculate ROI to view the result summary, graph, projection table, and export options.
FAQs
1) What does ROI mean in this calculator?
It compares your net college cost after grants with the extra after-tax earnings your degree may generate over the selected analysis period.
2) Does this calculator include student loans?
Yes. It estimates borrowing during school, projects monthly repayment, and shows a debt-adjusted earnings view alongside the core ROI calculation.
3) Should I include living expenses?
Include living costs if you want the full cash picture. If you would pay similar living costs anyway, reduce or remove that input.
4) Why compare against a no-degree salary?
ROI depends on the alternative path. A realistic no-degree salary creates a better benchmark than assuming zero earnings outside college.
5) What discount rate should I use?
Many users test 3% to 8%. Higher discount rates reduce the value of future earnings and produce more conservative NPV results.
6) Can this replace career counseling?
No. It supports planning, but program quality, graduation odds, career fit, labor demand, and location still matter greatly.
7) Why might ROI be negative?
High costs, weak salary premiums, slower growth, or heavy debt can delay break-even and create a negative return over your chosen horizon.
8) How accurate are the results?
They are scenario estimates, not guarantees. Use real tuition, aid offers, salary research, and loan terms for stronger decisions.