College ROI Calculator
Over 40 working years
+$1,708,961
more take-home money with the degree, after paying for it; $680,377 in today's dollars at a 3% discount rate.
The degree path catches up in year 14, 10 years after graduating. Cost to you: $50,000 paid during school plus $40,877 of loan payments ($341 a month, $10,877 of it interest), and $126,236 of after-tax pay you skip while studying.
Cumulative take-home money
Years from today across. U.S. bachelor's degree holders earn roughly 60–70% more than high-school graduates on average (BLS), but the gap varies widely by major, school and whether you finish: dropping out leaves the cost without the raise.
Estimate the financial return on a college degree over a career: take-home pay with and without the degree, after tuition, student loan payments and the earnings you give up while studying, the year the degree pays for itself and the gain in today's dollars.
Formula
Worked Example
The degree costs $50,000 paid during school, $40,877 of loan payments and $126,236 of after-tax pay skipped while studying. With a higher starting salary that also grows faster, the degree path catches up 10 years after graduating and stays ahead.
Frequently Asked Questions
Is college worth it financially?
On average, yes: U.S. workers with a bachelor's degree earn roughly 60–70% more than those with only a high school diploma, according to the Bureau of Labor Statistics. The average hides wide differences by major, school cost and completion, and the worst outcome is borrowing for a degree you don't finish.
What is the opportunity cost of college?
The pay you would have earned while studying instead of working. Over four years it can exceed the tuition, which is why the calculator counts after-tax earnings without the degree from today.
Why use a discount rate?
A dollar earned 30 years from now is worth less than a dollar today, both because of inflation and because money now can be invested. Discounting at about 3% turns the lifetime gain into today's dollars, which makes it comparable with the cost of the degree.