Free Graduate School ROI Calculator

Calculate the return on investment for attending graduate school by comparing earnings increase to total cost and opportunity cost.

ROI over 10 Years (%)

38.9

Breakeven (years after grad)7.2
10-Year Net Earnings Gain$70,000

ROI over 10 Years (%) vs Program Length (years)

How to Calculate Graduate School ROI

Grad school ROI considers both direct costs and opportunity costs.

Formula

Total Investment = Tuition + (Current Salary x Program Years)

ROI = ((Salary Increase x 10 - Total Investment) / Total Investment) x 100

Breakeven = Total Investment / Annual Salary Increase

Example Calculation

A 2-year program costing $80,000, current salary $50,000, expected post-grad salary $75,000.

  1. 01Salary increase = $75,000 - $50,000 = $25,000/year
  2. 02Opportunity cost = $50,000 x 2 = $100,000
  3. 03Total investment = $80,000 + $100,000 = $180,000
  4. 04Breakeven = $180,000 / $25,000 = 7.2 years after graduation
  5. 0510-year net gain = $25,000 x 10 - $180,000 = $70,000
  6. 06ROI = ($70,000 / $180,000) x 100 = 38.9%

Frequently Asked Questions

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