Finance calculator
College Value Calculator
Estimate college return on investment from net cost, degree salary premium, salary growth, discount rate, and working years.
FormulaEducation NPV = present value of incremental earnings - present value of net college cost
Formula
College value estimate
College outcomes vary by school, major, location, debt, completion, and labor market. Use official cost and earnings data before making enrollment or borrowing decisions.
Education NPV = present value of incremental earnings - present value of net college cost
If a degree adds 20,000 of first-year earnings and costs 80,000 net, compare discounted career premium against discounted cost.
SourcesThis calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
Sources and assumptions
Source notes
This calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
- Effective year
- Current rules
- Last verified
- 2026-06-18
College outcomes vary by school, major, location, debt, completion, and labor market. Use official cost and earnings data before making enrollment or borrowing decisions.
Official and reference sources
Assumptions
- Annual net cost equals annual cost minus scholarships, grants, or aid entered by the user.
- Salary with and without the degree are projected from the starting salaries and growth rates entered.
- Incremental earnings are discounted back after the years spent in school.
Not included
- Taxes, loan interest, living-cost differences, unemployment risk, major-specific outcomes, school completion risk, benefits, inflation, and nonfinancial value.
FAQ7 common questions for this calculator.
FAQs
What does college ROI mean?+
It compares the estimated lifetime earnings premium from college with the net cost of attending.
Should I enter sticker price or net price?+
Use net price when possible: tuition, fees, and relevant costs after grants and scholarships you expect to receive.
Does this include student loan interest?+
No. Add loan interest separately when comparing financing options.
How does the College Value Calculator calculate the result?+
For the College Value Calculator, it uses the College value estimate: Education NPV = present value of incremental earnings - present value of net college cost. If a degree adds 20,000 of first-year earnings and costs 80,000 net, compare discounted career premium against discounted cost.
What information do I need to use the College Value Calculator?+
For the College Value Calculator, enter net cost, degree salary premium, salary growth, discount rate, and working years. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.
How accurate is the College Value Calculator?+
College Value Calculator is accurate for the rates, amounts, dates, and rules entered. It uses the College value estimate shown on this page. Real products can differ because of fees, taxes, contract terms, or changing official thresholds.
What should I check before using the College Value Calculator result?+
For the College Value Calculator, check net cost, degree salary premium, salary growth, discount rate, and working years, then compare the College value estimate and worked example with the contract or source you will rely on. Fees, tax year, currency, and payment timing can change the final decision.
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How to use the College Value Calculator
Estimate college return on investment from net cost, degree salary premium, salary growth, discount rate, and working years. The page also explains the college value estimate and shows a practical example: If a degree adds 20,000 of first-year earnings and costs 80,000 net, compare discounted career premium against discounted cost.
- 1
Enter your details
Enter net cost, degree salary premium, salary growth, discount rate, and working years, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the college value estimate: Education NPV = present value of incremental earnings - present value of net college cost.
- 3
Compare scenarios
Change one or more inputs to see how they affect the college Value Calculator result before you use the estimate.