Financial Aid Calculator Formula
Understand the math behind the financial aid calculator. Each variable explained with a worked example.
Formulas Used
Net Cost (Out of Pocket)
net_cost = total_cost - grants - work_studyUnmet Need (Gap)
gap = total_cost - total_aidFree Aid Coverage
free_aid_pct = (grants / total_cost) * 100Variables
| Variable | Description | Default |
|---|---|---|
total_cost | Total Annual Cost ($) | 30000 |
grants | Annual Grants & Scholarships ($) | 12000 |
loans | Annual Loan Offers ($) | 8000 |
work_study | Annual Work-Study ($) | 3000 |
total_aid | Derived value= grants + loans + work_study | calculated |
How It Works
How to Calculate Net College Cost
Net cost is what you actually pay after subtracting free aid.
Formula
Net Cost = Total Cost - Grants - Scholarships - Work-Study
Loans are not subtracted from net cost because they must be repaid. The gap is the unmet need after all aid sources.
Worked Example
Total cost $30,000 with $12,000 in grants, $8,000 in loans, and $3,000 work-study.
total_cost = 30000grants = 12000loans = 8000work_study = 3000
- 01Net cost = $30,000 - $12,000 - $3,000 = $15,000
- 02Total aid = $12,000 + $8,000 + $3,000 = $23,000
- 03Gap (unmet need) = $30,000 - $23,000 = $7,000
- 04Free aid coverage = ($12,000 / $30,000) x 100 = 40%
Ready to run the numbers?
Open Financial Aid Calculator