Graduate School ROI Calculator Formula
Understand the math behind the graduate school roi calculator. Each variable explained with a worked example.
Formulas Used
ROI over 10 Years (%)
roi = ((salary_increase * 10 - total_investment) / total_investment) * 100Breakeven (years after grad)
breakeven_years = total_investment / salary_increase10-Year Net Earnings Gain
ten_year_gain = salary_increase * 10 - total_investmentVariables
| Variable | Description | Default |
|---|---|---|
grad_total_cost | Total Graduate School Cost ($) | 80000 |
current_salary | Current Annual Salary ($) | 50000 |
post_grad_salary | Expected Post-Grad Salary ($) | 75000 |
program_years | Program Length (years) | 2 |
salary_increase | Derived value= post_grad_salary - current_salary | calculated |
opportunity_cost | Derived value= current_salary * program_years | calculated |
total_investment | Derived value= grad_total_cost + opportunity_cost | calculated |
How It Works
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
Worked Example
A 2-year program costing $80,000, current salary $50,000, expected post-grad salary $75,000.
grad_total_cost = 80000current_salary = 50000post_grad_salary = 75000program_years = 2
- 01Salary increase = $75,000 - $50,000 = $25,000/year
- 02Opportunity cost = $50,000 x 2 = $100,000
- 03Total investment = $80,000 + $100,000 = $180,000
- 04Breakeven = $180,000 / $25,000 = 7.2 years after graduation
- 0510-year net gain = $25,000 x 10 - $180,000 = $70,000
- 06ROI = ($70,000 / $180,000) x 100 = 38.9%
Ready to run the numbers?
Open Graduate School ROI Calculator